in the name of god · the producer price index in 1396 increased 10.5 percent compared to the...
TRANSCRIPT
IN THE NAME OF GOD
2017 - 2018Annual Report
Management Report
Financial Highlights
Message from CEO
Iranian Economy in 1396 (2017/18)
Bank Profile
Strategic Direction
Business Model
Organization Chart
Investment Portfolio
Social Responsibilities
Awards & Achievements
Corporate Governance
Board Memebers
Internal Controls
Risk Management
Anti-money laundering
Committees
Bank’s Governing Rules & Regulations
Outcomes
Financial Summary
Operational Summary
Independent Auditor's Report
Financial Statements & Notes
05
07
08
10
11
12
14
15
16
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CONTENTS
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Independent Auditor's R
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M A N A G E M E N T R E P O R T
2017 - 2018Annual Report
BANK PASARGAD Annual Report 2017-201806
MANAGEMENT REPORT
Dividend per Share (DPS)2015/16 2016/17 2017/18
Total Income2015/16 2016/17 2017/18
Return on Assets (ROA)2015/16 2016/17 2017/18
Total Equity
Credit Facilities Paid2015/16 2016/17 2017/18
Capital Share2015/16 2016/17 2017/18
Net Profit2015/16 2016/17 2017/18
Return on Equity (ROE)2014/15 2015/16 2016/17
Total Liabilities2015/16 2016/17 2017/18
Risk Weighted Assets2015/16 2016/17 2017/18
Earnings per Share (EPS)2015/16 2016/17 2017/18
Profit Before Tax2015/16 2016/17 2017/18
Capital Adequacy 2015/16 2016/17 2017/18
Total Assets2015/16 2016/17 2017/18
Deposits Received2015/16 2016/17 2017/18
Related to the bank’s shares
For the Year
Ratios
At the End of the Year
46.44
12,136,101 m 93,009,666 m
116,125,277 m
61,827,118 m
11,633,839 m
88,650,410 m (6,498,210) m
2,340,624 m
160
0
50,400,000 m
50,400,000 m
50,400,000 m0
(128.93)
(6,498,210) m
2,340,624 m
15.85% 2.31 % 16.84 %
5.17%
3.82 % 0.31 %
0
3.86 %
0
561,481,151 m
423,049,252 m
74,396,132 m
343,217,757 m
487,085,019 m
457,661,857 m
59,494,290 m
464,389,460 m
589,183,411 m
590,405,060 m
790,350,567 m
978, 190,596 m
1,368,738,097 m
649,899,350 m
852,177,685 m
497,622,670 m
646,589,465 m
Financial Highlights
230.83
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"All we have achieved are His Blessings"
Dear fellow shareholders
The spirit, energy and professionalism of my colleagues from across Bank
Pasargad have given me the ability to face challenges, and confidence in our future, both as Bank CEO and as a shareholder. While there is still work to be done, bank performed fairly well in the financial year 2017/18 despite challenging market conditions, and the Group is benefiting from the balance that the diversity of product and business mix, gives us.
Although Bank Pasargad share capital amount remained constant this year with IRR 50,400 bn, we maintained our position as one of the largest commercial banks in Islamic Republic of Iran. Bank staff in more than 12 years of service with honesty and passion achieved great results. We stood 166th among Top 500 Banking Brands worldwide which indicates a good
progress comparing to last year position. Being awarded as the best bank in Iran for Excellence in 3 consecutive years by Euromoney, Bank of the year of Islamic Republic of Iran for 6 consecutive years and best Islamic Iranian bank for 5 years by Banker, Iran Most Admired Knowledge Leader by MAKE is just a small part of our achievements.
Although economic growth rate declined sharply from 12.5 percent last year to 3.7 percent, our financial results for 2017/18 show the progress we have made. The group reported IRR 4,527bn consolidated net profit, which indicates a good growth comparing to last year results despite tough and sometimes unfair competition in Iranian banking network. Total assets of bank have also grown by 31% and reached IRR 852,178bn. In the same period, credit facilities were up 27% to reach IRR 589,183 billion while deposits stood at 646,589 billion, with 30% growth.
Our performance represents the movement towards Bank Pasargad vision which is to
Message from CEO
Our performance represents the movement towards Bank Pasargad vision which is to be the Middle East’s leading bank and be ranked among the world’s top 500 corporations.
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be the Middle East’s leading bank and be ranked among the world’s top 500 corporations. Bank mission is also to add value to stakeholders; relying on efficient, professional and creative human capital, rich fundamental values and organization culture, inspiring stakeholders' needs, green banking and social responsi-bility which shows our honest dedication to sustainable growth.
Bank Pasargad is committed to its social responsibility and to integrate sound environ-mental, social and governance practices into our day-to-day business activities. In this respect, strengthening digital infrastructures and developing clients' culture, more than 90 percent of Bank transactions are electronic.
Looking ahead
In the year ahead although economic predictions do not look favorable, we have some special plans to increase our non-joint income and move forward to our long term goal
as achieving IRR 40,000bn by the year 1400 (2022). We will focus on trade finance as Bank Pasargad has still access to SWIFT and maintains good relationship with corre-spondent banks despite unfair sanctions against Iranian banking system.We have also planned to increase our share in deposit and credit facilities domestic market, while planning to establish our first foreign branch in India to utilize better the opportunity of trade finance in one of the important Iran trade partner. Meanwhile, we continue our efforts in developing new business models, investing on Fintechs and start-ups and more innovative services to enhance our clients' digital experience. Our corporate banking department will try to meet corporate client needs by developing more specific packages. We aim to keep our high customer satisfaction level as to remain a "customer-fo-cused" bank fully compliant with bank’s motto "Customer is the essence of the bank". In closing, I would like to
express my gratitude to our shareholders for their trust, to appreciate our customers for their loyalty and support, to thank all board members and management team for their enormous efforts and to thank our great team of “bankers” for their responsible commitment and dedication to the bank.
Majid Ghasemi
10
I ranian Economy in 1396 ( 2017 / 2018 )
The Year 1396 was the first year of Iran’s sixth 5 year Development Plan. This plan is based on general policies such as, rapid and sustainable economic growth and employment, average growth of 8% during the plan, the continuous improvement of business environment and strengthening competitiveness.
Following a strong rebound in economic growth as result of JCPOA agreement (12.5 percent in 1395), economic growth rate declined sharply to 3.7 percent in 1396. Non-oil GDP growth was 4.6 percent due to positive growth in value added of construction sector.
The oil sector’s value added growth rate started decelerating in 1396 as oil sector’s value added has considerable share in GDP.
Also because of single digit Inflation rate, real deposit profit was positive, therefore for supporting internal (home) producers and granting credit facilities with lower rate, the Central Bank of Iran decreased the deposits rates. This reduction along with US threats in withdrawing from JCPOA, affected Iran's exchange market.
Exchange market experienced volatility and nominal exchange rate increased in the winter of 1396. In order to control exchange rate, the CBI increased its injection of foreign currencies into the market. Moreover, the Central Bank allowed banks to issue one-year Rial-denominated certificates of deposits (CDs) at 20% and foreign exchange-denominated CDs, and to pre sell gold coins with six to 12-month maturities.
In 1396, average inflation rate was 9.9 percent at the end of year 1396. On average, the Producer Price Index in 1396 increased 10.5 percent compared to the previous year. Since Producer Price Index is leading indicator, it can be concluded that the inflation rate will be expected to increase in 1397.
Furthermore, unemployment rate was 12.1 in the year 1396 and this rate remained high for both youth and women.
The situation in 1397 will depend mainly on government and CBI policies and the US position in JCPOA. Realization of higher economic growth, as envisaged in the Plan, needs stable economic situation and higher investment in the economy.
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Bank Prof i le
Bank Pasargad is a full-service commercial bank with a network of 327 branches in all 31 Iranian provinces. The bank focused on 3 principal business segments: Retail, Private and Corporate banking. Bank Pasargad was registered under No. 254300 at the Tehran Companies’ Registrar Office on September 4th, 2005.
The Central Bank of the Islamic Republic of Iran (CBI) issued the banking operation license No-2849 on September 13, 2005 in favor of Bank Pasargad.In accordance to Bank Pasargad Articles of Association, all the bank’s services and operations are in compliance with the related rules and regulations.
Bank Pasargad headquarter is located at: No. 430, West Mirdamad Blvd., Tehran, 74511-19697, Iran. The Bank has 56,509 share-holders composed of individual and institutional investors. Major shareholders of the bank as of March 20, 2018 were as follows:
Shareholders Shares
Type Number % of total Number % of total
Individual investors 56,149 99.36 10,815,783,085 21.46
Corporate investors 360 0.64 39,584,216,915 78.54
Total 56,509 100.00 50,400,000,000 100.00
Type Number of shares Ownership %
Pars Aryan Investment Co. 4,982,729,973 9.89
Nikandishan Soroush Fajr Co. 2,412,208,950 4.79
Hoordadrayan Co. 2,336,111,933 4.64
Sam Group Co. 1,891,803,816 3.75
Kharazmi Investment Co. 1,864,676,185 3.70
Milad Gostar Noavaran Co. 1,862,382,641 3.69
Tamin Atiyeh Co. 1,467,181,430 2.91
Daneshgostaran Atisaz Pouya 1,427,514,649 2.82
Saba Investment development and management Co. 1,420,000,000 2.82
Ms. Setareh Mansoobi 1,304,436,038 2.59
Binesh Pazhooh Iranian Co. 1,304,316,955 2.59
Salin Investment Consulting Co. 1,282,225,669 2.54
Mr. Mohammad Hadi Nik La’al Fard 1,280,941,936 2.54
Sahab Omid Iranian Co. 1,157,134,251 2.30
Hamghadam Trade Co. 1,132,196,168 2.25
Refah and Tamin Atiye Omid Institute 949,022,757 1.88
Koosar Hamyari Institute 824,236,265 1.64
Bareghe Omid Iranian Co. 524,958,123 1.04
Nazmavaran Pouyaye Iranian Co. 509,905,490 1.01
Other 20,466,016,771 40.60
Total 50,400,000,000 100.00
Bank Pasargad's ownership amongst individual and corporate investors:
12 BANK PASARGAD Annual Report 2017-2018 Management Report
Vision StatementWe aspire to be the Middle East’s leading bank and be ranked among the world’s top 500 corporations driven by five core philosophies and principles:
Customer is the essence of the bank / We shall always remain a fully customer-focused bank and consider our clients to be our biggest asset. We promise to serve all people regardless of their faith, color or nationality based on our moral and human beliefs. We pledge to be the best bank for our customers, assisting them to grow both domestically and internationally, enabling businesses to thrive and helping people to accomplish their dreams and achieve their aspirations.Add value to our stakeholders / We aim to realize high returns and further prosperity for our stakeholders by assuring a continuous and sustainable long-term growth for the bank. Innovation and evolution / We strive to continuously innovate our products and services based on the most advanced technologies and relentlessly evolve and raise the bar with respect to the increasingly sophisticated financial needs of our retail and institutional clients. Protect the environment / We remain committed to fulfilling our social responsibilities and confront social concerns by trusting our rich corporate culture, fundamental values and beliefs.Create positive economic impact in our communities / We are conscious and proud of our Iranian roots while remaining devoted to a global perspective. We are committed to playing an active role in the growth of the Iranian national economy and contributing to the advancement of every community in which we are present.
Achieving 40.000 billion RLS profit in 2022Achieving proper place in international banking and financial industryAchieving the first rank in deposit market share among Iranian banksIncreasing revenueAdding value to shareholders and other stakeholders
Strategic Direction
Our primary objective is to be the best provider of financial services for our customers while realizing high returns and further prosperity for our stakeholders by assuring a continuous and sustainable long-term growth for the bank.
Mission Statement Long-Term Goals
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Core Values and Beliefs Our values guide us in every decision we make and are the foundation for everything we do:
Ethics / Our commitment to high ethical standards, Islamic virtues, legal compliance and fairness is reflected in all values and beliefs embedded throughout our bankIntegrity / Our pledge to do what is right at all times under the highest standards of integrity fosters the confidence and trust of our shareholdersLoyalty / Our devotion to clients and desire to build long-term relationships is revealed on a daily basis by inexhaustible loyalty to our clients and respecting client confidentialityResponsibility / Our nonnegotiable undertaking to respect and observance all prevailing domestic and international laws, regulations and standards is précised in our governance and goes abundantly beyond simply satisfying legislation Leadership / Our aim to be an industry leader on a global scale demands effective leadership, dedication to excellence, accountability and courage at all levels of the bankMeritocracy / Our trust in our human capital as the pillar of our future success requires us to constantly prosper their growth, increase their knowledge and efficiency, and polish their skills and commitment to excellence
Providing Capital Banking services for our customersContinuous development of the bank’s human capital alongside deployment and improvement of an integrated human capital systemEstablishment and continuous improvement of integrated knowledge, marketing, investment and risk management systemsEnhancing the bank’s domestic market share and network while planning for an effective and robust entrance to the international market sceneDiversification of the bank’s revenue stream and sources of income Commitment to providing diverse and innovating products and services, responding to our client's needs based on new technologies Commitment to providing diverse and innovating products and services, smart banking, responding to our client's needs based on new technologies and improve their digital experiences.
Grand Strategies
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Business ModelK
ey P
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Organization Char t
16 BANK PASARGAD Annual Report 2017-2018 Management Report
Investment Por tfolio
MIDDLE EAST MINES INDUSTRIES DEVELOPMENT HOLDING COMPANY
No.8, Ma'aref St., Farhang Blvd., Sa'adat Abad, Tehran, Iran Phone: (+9821) 27340Fax: (+9821) 22363691www.midhco.com [email protected]
PARS ARIAN HOLDING INVESTMENT COMPANY
No. 21, 10th Ave., Bucharest St., Tehran, Iran Phone: (+9821) 88170024 - 29Fax: (+9821) [email protected]
FIELD OF ACTIVITY:
› Investment in Pasargad Financial Group (PFG) (Financial Services, Mining Industries, ITC and Building Construction)
› Investment in Tehran Stock Exchange (TSE) › Building Construction › Commitment to Social Responsibilities
FIELD OF ACTIVITY:
The activities of the group are focused on mining and metallurgical industries, with the aim of creating a development model in the country in terms of projects volume and the nature.With regard to our high potentials in engineering, management and our strong performance, MIDHCO is standing among top 10 world mining companies. It advanced new technology in production copper through industrial bioleaching process and has employed the state of the art technologies in steel industry.
TOTAL CAPITAL (IRRM)
17,537,500
ESTABLISH DATE
2005
EMPLOYEES
21
TOTAL CAPITAL (IRRM)
23,760,000
ESTABLISH DATE
2007
EMPLOYEES
4127
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PASARGAD ARYAN ICT COMPANY (FANAP)
No.3, East Ghobadian st., Africa Blvd., Tehran, Iran Phone: (+9821) 88197022 - 88197018 - 88190705Fax: (+9821) 88327614www.fanap.ir
FIELD OF ACTIVITY: › Financial Services such as banking,
Insurance and stock-exchange › Payment & E-commerce › Telecommunication and Value-added
services › Smart Health and Public Services › Enterprise Software Solution › ICT related EPC project.
PASARGAD INSURANCE COMPANY
No. 2, Hasht Behesht St., Dr Fatemi St., Tehran, Iran.Phone: (+9821) [email protected]
FIELD OF ACTIVITY:
Provide insurance services with international standards, to make profit in accordance with national interests, and to work in the field of life insurance and non-life insurance (direct and reinsurance accepted)
TOTAL CAPITAL (IRRM)
1,200,000
ESTABLISH DATE
2006
EMPLOYEES
478
TOTAL CAPITAL (IRRM)
2,551,500
ESTABLISH DATE
2006
EMPLOYEES
935
18 BANK PASARGAD Annual Report 2017-2018 Management Report
IRANIAN REINSURANCES COMPANY
No. 5, Zayandeh Roud St., North Shiraz St., Molla Sadra Ave., Tehran - Iran Phone: (+9821) 88628611 - 16Fax: (+9821) [email protected]
TOTAL CAPITAL (IRRM)
2,500,000
ESTABLISH DATE
2010
EMPLOYEES
35
FIELD OF ACTIVITY:
› Accept reinsurances in all fields of domestic and international markets based on license issued by Central Insurance of Iran
› Establishing, participating or managing domestic and international reinsurance funds
› Obtaining reinsurance coverage in relation with obligations of accepted insurance
› Investing from capital Reserves, technical and legal reserves and other company’s financial resource
› Providing side services in reinsurance field
PASARGAD LEASING COMPANY
No. 61, Before Mirdamad Bridge, Nelson Mandela Blv., Tehran, Iran Phone: (+9821) 88662720Fax: (+9821) [email protected]
FIELD OF ACTIVITY:
granting facility for purchasing:
› administrative units › commercial units › Residential Units and offices for engineer
and doctors › building material › educational, cultural, treatment, sport and
etc. complex
TOTAL CAPITAL (IRRM)
500,000
ESTABLISH DATE
2005
EMPLOYEES
21
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TOTAL CAPITAL (IRRM)
200,000
ESTABLISH DATE
2009
EMPLOYEES
14
No. 2, East Taban St., Nelson Mandella Blvd., Tehran, Iran Phone: (+9821) 88670189Fax: (+9821) 88654605www.pasargadexchange.com
PASARGAD EXCHANGE COMPANY
FIELD OF ACTIVITY:
Process FOREX transfers as quickly as possible and buying of foreign currencies, whether transferred to our bank or being the balance of customers' accounts are some of the services the Bank Pasargad provides with the help of Pasargad Exchange Company.
BANK PASARGAD BROKERAGE COMPANY
No. 4, 23 St., Baharan St., Argentina Square, Tehran, Iran Phone: (+9821) 42392000Fax: (+9821) [email protected]
FIELD OF ACTIVITY: › Stock Exchange (TCE) › Over-the-counter (IFB) › Mercantile Exchange › Energy Exchange › Trade
TOTAL CAPITAL (IRRM)
180,000
ESTABLISH DATE
2006
EMPLOYEES
92
20 BANK PASARGAD Annual Report 2017-2018 Management Report
TOTAL CAPITAL (IRRM)
100,000
ESTABLISH DATE
2015
EMPLOYEES
23
ARZESH AFARINAN PASARGAD
2nd Floor, No.139, Pasargad Building, Mirdamad Blvd. Tehran, Iran Phone: (+9821) 26401844-9Fax: (+9821) [email protected]
FIELD OF ACTIVITY:Arzesh Afarinan Pasargad is the investment company of Bank Pasargad. The Company is one of the most experienced one in the Pasargad Financial Group. It's aim is maximizing shareholders’ value through investments in a diversified portfolio including mining, energy, construction, information technology and financial services.
PASARGAD NASIM HEALTH COMPANY
NO.1, End of Mina St., Faraz Alley, Saadat Abad, Tehran, Iran Phone: (+9821) 22347471 Fax: (+9821) 22347400 [email protected]
FIELD OF ACTIVITY:
› Setting best new standards in healthcare sector amongst Islamic countries
› Delivering best healthcare quality at an affordable cost and on a large scale basis
› Executing and impellent Public Private Partnership (PPP) project in all Islamic countries
› Arranging financing based on project requirements and client specifications
› Educating and training young professional in every country in which we are present
TOTAL CAPITAL (IRRM)
7,600,000
ESTABLISH DATE
2006
EMPLOYEES
12
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TOTAL CAPITAL (IRRM)
1,000,000
ESTABLISH DATE
2006
EMPLOYEES
433
PASARGAD E-PAYMENT COMPANY
No.52, Near Bank Pasargad, western Sarv St. Pak-nejad Blvd. Saadat Abad, Tehran, Iran Phone: (+9821) 23505 Fax: (+9821) 22116707 [email protected]
FIELD OF ACTIVITY:
› Issuance of different cards (debit, credit, gift, shopping, …)
› POS terminals › Payment gateway services › Virtual services › Monitoring and implementation of WAN and LAN › Implementation of different projects in relation
to the card industry
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Social Responsibil ity
Bank Pasargad is committed to improve economic, social and cultural aspects of life between all layers of Iranian population throughout Iran. We have initiated and implemented extensive programs nationally for the promotion of arts, sponsorship of sports, endorsement of charity events, and encouraged organizations in various fields such as science and education, in order to elevate and prosper communities. The following list represents some of the events arranged and sponsored by Bank Pasargad as part of its social responsibilities:
Financing large and national development projects
Support for production and economic self-sufficiency
Resource Management, Energy and the Environment
Creating direct and indirect job opportunities
Helping to develop education in deprived areas
Helping to promote cultural, scientific, educational
Supporting the publication of selected specialized books
Establishment of Khatam University
Support of Philanthropic Activities
Join forums and support conferences
Supporting sports including the National Freestyle
The most important activities of the Bank Pasargad in the area of social responsibility are as follows:
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Future plansOrganizing and activating a work group, including trustees of major areas relevant to social responsibility
Continued participation in projects related to social and economic progress of society in various dimensions
Membership in national and international institutions related to social responsibility
Collaborating with external organizations to promote social responsibility among stakeholders
Disclose the Bank's social policies and procedures
Setting and documenting the ethical and environmental conditions in contracts with partners, recipients and suppliers, and systematic monitoring of compliance with them.
Providing tools for valuing and measuring supported projects and their spiritual and material return to the bank Beneficiaries
The quantitative and qualitative increase of interactions with stakeholders through the streaming of social responsibility policies of the bank
Continuing to publish annual report on the " Bank Social Responsibility "
Establishing the necessary coherence on the subject of social responsibility at the level of the Pasargad Financial and Economic Group
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National level
Silver Trophy of National Award of Organizational Excellence; Industrial Management Institute (Human Resource and Productivity Studies Center)
Golden Trophy of National Award of Financial Management; Secretariat of Financial Management Award
Ranking 12 among 100 top companies in Iran; Industrial Management Institute
Trophy of the most favorite bank in Iran by 25000 customers; the 2nd annual "My favorite bank" festival
Trophy of entrepreneur and job creator organization of the year; The 6th National Festival of Celebrations of Top Entrepreneurs and job creators
Trophy of productivity and quality; Tenth conference on productivity and quality
Bronze Award for Human Resource Excellence; Industrial Management Institute (Human Resource and Productivity Studies Center)
Trophy of the best Iranian company in support of culture and art; TOPEX Secretariat of Iran's Top Companies
The industry champion of the Islamic Republic of Iran; Hooshmand Tadbir (Ministry of Industry, Mine & Trade)
The four-star Bronze Award for Iran's leading organization in human resource excellence; Secretariat of the National Human Resource Excellence Award
Golden Award for The firm is synchronized with efficiency; National Productivity Forum
Golden Trophy of Administrative Health Management Award (Lean Organization); Secretariat of Administrative Health Award (Ministry of Justice)
Trophy of the Superior Organization Award in the Leadership and quality of administrative health management; Secretariat of Administrative Health Award
Trophy of the Third National Conference on Social Responsibility; the Conference Secretariat of Social Responsibility
Earning a Top Rank at the National Productivity Festival 1404; Fourth National Productivity Festival
Awards & Achievements
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International level Best Bank in Iran by Euromoney Awards for Excellence Middle East 2017; Euromoney
Selected as one of the top 10 Middle East brands and 175 in world ranking; The Banker
Selected as one of the top knowledge organizations, Make Award 2017; Sharif University of Technology on behalf of Make World award
Iran Most Admired Knowledge Leader "as knowledge fastest growing", MAKE 2016
Award for the 5th Regional Climate Change Conference; MAKE
bank of the year 2016 for Islamic Republic of Iran; The Banker
bank of the year 2016 for Islamic Republic of Iran; Euromoney
Trophy of Managing Health at Work; Asia pacific HRM congress
Trophy of Best HR Organization to Work; Asia Pacific HRM congress
Golden Trophy of Quality and Business Prestige; Other ways Management and Consulting Association of France-Paris
Certificate of conformity of educational management system with ISO10015: 1999 standard; IMQ Academy
Diamond award 5002IUI for Virtual Banking; International Union of Innovations, Inventions and Industrial Innovations
ISO 10004 in the field of customer satisfaction; ACS Registrars
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Board Memebers
1 1 SEYYED KAZEM MIRVALAD Chairman
1 2 MAJID GHASEMI Vice Chairman and CEO
1 3 AHMAD VADIDAR Member
1 4 ZABIHOLLAH KHAZAEI Member
1 5 MOSTAFA BEHESHTIROUY Member
In accordance with the minutes of Extra Ordinary General Meeting of Shareholders, dated January 3, 2017, Bank Pasargad Board of Directors (whose eligibilities are approved by the CBI) are comprised of:
CORPORATE GOVERNANCE
1 6 KAMRAN EKHTIAR Member
1 7 ALI AKBAR AMIN TAFRESHI Member
11
41
71
21
51
31
61
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1 1 MAJID GHASEMI President
1 2 ZABIHOLLAH KHAZAEI Member
1 3 KAMRAN EKHTIAR Member
1 4 MOHAMMADREZA HAJIAN Member
1 5 ALIREZA HADIAN Member
1 6 ABDOLREZA TIZNOBAKE Member
1 7 MOHAMMAD AMIR DAVOUD Member
1 8 ARSALAN AMIRI
Member
1 9 ZAHRA MIRHOSSEINI
Member
Executive Board Memebers
11
41
71 81 91
21
51
31
61
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Internal Controls
Deployment and implementa-tion of internal control systems in Bank Pasargad is one of the main concerns of its senior management. It includes plans, methods and procedures utilized to reach the goals of productive and efficient internal control system. The goal of internal control system and internal audit
is to improve management of the bank through limiting behaviors, which may result in wastage, inap-propriate allocation of resources, and corruption. Top management of Bank Pasargad believes that imple-mentation and continuity of a robust internal control will lead to effective and efficient
management and may result in maintaining the profitability and minimizing the unexpected risks. It will also enable the bank to react to rapid changes of economic and competitive environments, customer demand, and taste, appropriately. As a whole, internal control system in Bank Pasargad has aimed at the following targets:
Achievingbank’s goals
Protectingbank’s assetsand resourcesagainst anymisuse and loss
Ensuring effectiveness and efficiency
of practices
Ensuring proper performance of financial and managerial reporting system and promoting its transparency
Successfulmanagement
of bankingrisks
Ensuring properperformanceof soundadministrativesystem
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Bank Pasargad internal control integrated components are as follows:
In addition to board of directors' special attention, in bank Pasargad audit committee and Internal audit and inspection management perform continuous supervision and inspections in order to keep the internal control system effective.
Control environment
Risk identification and
assessment
Control activities
Information and
communications
Self-assessment, supervision,
and weakness improvements
Preparing internal control report for Tehran Stock Exchange
Deployment of effective and proper internal control
Reasonable assurance of reliability and timeliness of financial reporting
Proper and complete disclosure of related parties information
Timely prevention and identification of fraud and other material misstatement in financial reporting
Proper keeping of documents of transactions and events
Reasonability of predicted financial information
Comparing actual performance with the budget and complete disclosure of material discrepancies and urgent disclosure of important information
Assessing and reporting internal controls
The Board and top management are responsible for:
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It has been established in first years of bank’s activity and to comply with corporate governance principles, Central Bank of Iran, and Tehran Stock Exchange requirements and standards. Members are some Board members and Bank's consultants. The following guidelines and codes were prepared according to international standards, rules and regulations:
Audit committee code of conduct
Internal audit code of conduct
Internal control recommendations regarding on issued guidelines and instructions
Bank Pasargad integrated supervisory and internal control code
Bank Pasargad audit committee’s instructions
Bank Pasargad internal control framework
Bank Pasargad corporate governance code of conduct
Bank Pasargad code of ethics
The department began to work since bank’s establishment in order to provide control requirements and supervision on banking activities as well as processes. Its main mission is to act in line with professional and international standards in a way which results in achievement of above mentioned goals. Other activities:
Supervision of rules and regulations according to AML/CFT.
Developing off-site supervision
Improving the process of responding to complaints received through the CRM.
One of the measures taken by the CBI in recent years was to enhance transparency in the banking system with the aim of preserving stakeholders’ interest. In accordance with CBI regulations and in line with Basel Committee Standards, Bank Pasargad publishes details of its financial and non-financial information, e.g. risk management, internal control and material events on its website homepage. Meanwhile, Bank Pasargad prepares its annual report in accordance with CBI's new Reporting Format in line with IFRS disclosure requirements.D
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Bank Audit Committee
Internal Audit and Inspection Department
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Risk Management
• holding risk management supreme committee meetings on a monthly basis and giving recommendations to the board about risk management issues
• holding risk management sub-committees meetings and report to the supreme committee
• Registering records in operational loss database by related departments
• steps taken to implement liquidity, credit and market risk modules in ERM system
• Report on Risk culture in Bank Pasargad • Report on a review of Basel III requirements and Capital
Adequacy Ratio calculations • Capital Adequacy Ratio calculation According to CBI circular in
1396 • Report on Reputation Risk focused on Bank Pasargad • Analysis of future banking Risk management
(Bank Pasargad case) • Review on Basel III changes • Liquidity coverage ratio calculations according to Basel III • Report on foreign assets and investments risk • Report on Risks related to AML • Report on internal controls status in Bank Pasargad
The most important future actions to be taken: • Preparation of Risk appetite statement -1397 • Reports on different types of risks in Bank Pasargad
In order to keep the bank's operations healthy and reduce potential losses, Bank Pasargad has taken significant note of risk manage-ment and it has always tried to manage all types of risk effectively. According to CBI and international standards and best practices, the risks that the Bank is exposed to are separately monitored in categories including credit, liquidity, operational, market & compli-ance risks. Currently, Bank Pasargad does its best to finalize and implement the ERM project to be compliant with the latest inter-national standards and identify and manage risks more accurately and become one of the pioneers in Iran banking industry.The most important actions taken in the reporting period are as follows:
• Expanding the activities of risk expert and managers level sub-committees
• Implementation of Liquidity and market risk modules in ERM
• Implementation of new credit scoring system in the Bank
• evaluation of risk culture in Bank Pasargad
• Preparing report on risk capital required based on the latest changes in Basel standards
ComplianceAs Compliance function became centralized in financial Year 2016/17 in Bank Pasargad, new compliance department was established under supervision of deputy of Banking and Economic Studies, based on requirements provided by the central bank called" Compliance and the Compliance Function
32 BANK PASARGAD Annual Report 2017-2018 Management Report
in Banks". Before establishing independent compliance department in Bank Pasargad, all banking compliance activities had been accomplished based on issued guidelines and circulars, which were monitored and controlled by inspection and risk management departments. In order to maintain stable and secure banking operations and also to prevent risk-imposing penalties, regulatory or supervisory punishments, or significant losses tarnishing bank's good reputation, as a first step compliance department prepared BP's compliance policy concidering all rules, regulations, standards, statutes, instructions, guidelines and ratifications declared by domestic and international supervisory and regulatory bodies. The compliance policy was approved by the board in Dec. 2016 based on the following Principles:
• Utilizing and deploying the professional procedures in accordance with ethical requirements.
• Complying with professional laws, regulations and professional standards
• Avoiding conflict of interest • Preserving confidentiality • Protecting bank assets and customers' interests • More transparency in Bank's performance and operations • Decreasing losses of being noncompliant • Preserving integrity and reputation of the Bank
It is important to mention that compliance reports are sent to the chairman of the board, CEO and head of risk management supreme committee. The highest authority after the board of directors (who bears the responsibility of compliance) is risk management supreme committee.
The most important future plans are as follows: • Preparing anti-bribery and corruption policy • Preparation of compliance reports • Holding compliance training programs for all Bank human capital • Monitoring local and international rules, regulations, standards
constantly and revision of compliance policy • Revising Bank compliance policy • Improving sanction screening of customers procedures • Enhancing anti financial crime programs • Taking more proactive approach in compliance
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• All reports of cash withdrawals over the prescribed limits have been sent to the financial intelligence Unit.
• All suspicious transaction reports (STR), which are created by branches or inspected by the AML department through the AML software, are sent to the Financial Intelligence Unit.
• All inquiries from the Financial Intelligence Unit and the Central Bank's Money Laundering Unit have been provided promptly.
• Information on the level of customer's activities in accordance with the request of the Financial Intelligence Unit has been prepared and sent.
• Customers Identity parameters was sent to the Central Bank of the Islamic Republic of Iran to get the code of SHAHAB.
• Information about all the customer's power of attorneys filed by the branches are checked regularly and in accordance with the format of the Financial intelligence unit and have been
sent to FIU and the Central Bank's Money Laundering Office.
• The status of deposits of deceased customers and companies whose term of activity has been completed (dissolved) and customers whose SHAHAB codes are incomplete, in order to comply with the relevant provisions, have been blocked and the removal of blockage has been made for the assignment and continuation of banking operations by the department.
• The Anti-Money Laundering Committee meetings have been held.
• The assignments set by the Financial Intelligence Unit have been followed up according to the scheduled timetable.
• Online communication with National Organization for Civil Registration and the national database of foreign entities and the list of sanctions in all branches for the purpose of authentication of documents and sanctions screening has been established
Anti-money laundering
In accordance with the privileged position of the bank in the banking system of the country, conformity with the policies and procedures of the central bank and providing the privileged, accurate, efficient and timely services for our clients are our signboard and mission.Therefore several actions have been taken to be in line with the duties assigned and the adequacy of the evaluation and the efficiency of the internal controls and to provide an operational and precise level of assurance in AML and CFT program, and in compliance with the laws and regulations released by the regulatory authorities (central bank and financial Intelligence unit) the major measures that were taken are:
34 BANK PASARGAD Annual Report 2017-2018 Management Report
and updated. • All branches have access to the National
ID No. System of legal entities to obtain or confirm the National ID number of Iranian legal entities.
• In pursuance of the implementation of Article 20 of the Instruction on how to identify Iranian customers, Group enquiring of previous customers from the National Organization for Civil Registration is in progress, the databases are being updated, and the deposits of persons who have died are blocked.
• The possibility of filing and printing Cash transaction reports (CTR) on the core banking system (FANAP) and internal Portal of the bank.
• In conformity with the circular of monitoring Suspected Persons, a list of suspected individuals which are received monthly from the Financial Intelligence Unit are registered, updated and reviewed on the Core Banking System.
• Conducting onsite and offsite inspections and AML program evaluation and exercising controls at the level of Branches.
• In order to comply with the instructions for cash transaction circular, filling in the relevant forms are mandatory and conducting cash transaction more than 150.000.000 RLS is inhibited.
• Anti-Money laundering portals were updated to inform all colleagues about the latest AML&CFT Instructions and procedures.
• In order to inform and clarify client's knowledge about Money Laundering and terrorism financing, the laws and regulations related to AML&CFT were uploaded and updated on the Bank Pasargad website.
• Software related to improve processes and effectiveness and efficiency of the Anti-money laundering system are used for monitoring and controlling all the operations
and tracing the movements of funds. • Attending In the workshops and training
courses and national and international conferences in the field of AML and CFT. Enhancing the AML&CFT knowledge of colleagues by performing specific AML &CFT training and courses.
• Responding and fulfilling the AML questionnaires that were sent by correspondent banks.
The most important summary of the proposed program of the Anti-Money Laundering Depart-ment in 2017/2018
• Holding a training course on AML&CFT for all staff;
• Assessing the staff's awareness regarding AML&CFT regulations;
• Updating and improving Bank Pasargad AML&CFT program.
• Upgrades and apply necessary changes to the AML software.
Committees
Bank’s professional committees are as follows:
• Strategy Committee • Risk Management Supreme Committee • Nomination Committee • Audit Committee • Credit Committee • Technology & IT Committee • New Products and Innovation Committee • Marketing & Advertisement Committee • Assets & Liabilities Management Committee • Human Capital Development Supreme Committee • Recruitment Committee • Disciplinary Committee
Bank’s Governing Rules & Regulations
The main laws and regulations governing banks activities in Iran are:
• Monetary and Banking Law (Approved in 1972), and its amendments
• Usury-Free banking Law (Approved in 1983) • Annual Monetary Financial and Supervisory Policies of
CBI • Anti-Money Laundering Law (Approved in 2007) • The law of Combating the Financing of Terrorism (CFT)
(Approved in 2016) • Tax law • Securities Market Law of IRI • Money and Credit Council Approvals • Circulars from the CBI • Commercial Code of IRI • Bank Pasargad Articles of Association
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Financial Summar y
2017/18 2016/17 2015/16 2014/15Restated
Assets
Cash 73,948,428 46,216,433 61,356,867 54,484,038
Dues from banks & financial institutions 23,907,158 12,032,436 16,407,531 29,212,866
Credit facilities and dues from governmental entities 0 2,557,194 0 0
Credit facilities and dues from non-governmental entities 589,183,411 461,832,266 343,217,757 275,119,381
Investment in shares and other securities 16,646,262 16,747,549 17,604,497 18,615,011
Receivables from Subsidiaries and Associates 2,084,069 984,406 20,997,831 0
Other accounts receivable 3,329,891 2,105,948 2,201,634 9,758,137
Tangible fixed assets 12,086,368 12,020,088 9,210,930 8,271,988
Intangible assets 8,669,925 6,246,723 5,186,589 4,069,100
Legal deposit 64,315,225 53,297,867 49,288,170 40,217,749
Other assets 58,006,948 35,858,440 36,009,345 7,639,804
Total assets 852,177,685 649,899,350 561,481,151 447,388,074
Liabilities
Dues to banks & other credit institutions 38,563,382 38,215,799 28,576,822 25,522,608
Customers deposit 36,945,383 22,580,984 19,924,276 25,535,576
Dividends payable 165,040 1,024,921 157,271 145,114
Income tax provision 416,741 504,715 2,578,348 5,099,085
Provisions and other liabilities 103,634,640 52,245,593 32,158,863 2,137,874
Provision for employees retirement benefits 981,299 791,362 564,463 407,310
180,706,485 115,363,374 83,960,043 58,847,567
Term deposits
Term deposits 609,644,082 475,041,686 403,124,976 324,753,214
Equity
Share capital 50,400,000 50,400,000 42,000,000 30,000,000
Capital increase (in progress) 0 0 8,400,000 12,000,000
Legal reserve 11,609,848 11,609,848 11,609,848 9,864,758
Other reserves 3,869,949 3,869,949 3,869,949 3,288,253
Retained earnings (4,052,679) (6,385,507) 8,516,335 8,634,282
61,827,118 59,494,290 74,396,132 63,787,293
Total liabilities, Depositors' rights & equity 852,177,685 649,899,350 561,481,151 447,388,074
Statement of Financial Position Amounts in IRRm
OUTCOMES
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2017/18 2016/17 2015/16 2014/15Restated
Income from credit facilities and deposits 97,138,129 83,201,762 73,305,031 64,699,088
Profit of term deposits (85,162,995) (71,110,807) (67,100,604) (52,127,360)
Net income from credit facilities and deposits 11,975,134 12,090,955 6,204,427 12,571,728
fee and commission income 3,936,989 3,203,554 3,945,960 3,087,206
fee and commission cost (2,122,640) (1,979,431) (901,214) (346,351)
Net fee and commission income 1,814,349 1,224,123 3,044,746 2,740,855
Net investment income 784,092 347,224 13,071,056 4,522,528
Net foreign exchange transactions income 13,830,359 (663,143) 176,913 711,778
Total operating income 28,403,934 12,999,159 22,497,142 20,546,889
Other income 435,708 1,897,870 2,510,706 1,016,996
General and administrative expenses (9,256,886) (7,228,575) (6,495,250) (4,428,135)
Doubtful debts expenses (16,522,253) (11,128,200) (5,919,496) (2,928,697)
Financial cost (135,736) (2,498,928) 0 0
Depreciation expenses (584,143) (539,536) (457,001) (254,571)
Profit before tax 2,340,624 (6,498,210) 12,136,101 13,952,482
Income tax 0 0 (502,262) (1,309,786)
Net profit 2,340,624 (6,498,210) 11,633,839 12,642,696
Earning per share-IRR 46.44 (128.93) 277 301.02
Amounts in IRRmBank Pasargad Statement of Profit or Loss
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2017/18 2016/17 2015/16 2014/15 2013/14
Total deposits 646,589,465 497,622,670 423,049,252 350,288,790 304,815,336
Growth rate (%) 29.94 17.63 20.77 14.92 28.10
Deposits (IRRm)
2017/18 2016/17 2015/16 2014/15 2013/14
Bank Pasargad deposits 646,589 497,623 423,049 350,289 304,815
Total banking system deposits* 16,464,055 12,728,364 10,619,015 8,192,761 6,844,166
Ratio of bank Pasargad deposits to Total banking-system deposits (%)
3.93 3.91 3.98 4.28 4.45
Comparison of bank Pasargad deposits and banking system (IRRm)
* Information about the entire banking-system deposits was received from the Central Bank website
2017/18 2016/17 2015/16 2014/15 2013/14
Total Credit facilities and dues from non-governmental entities 589,183,411 464,389,460 343,217,757 275,119,381 219,191,282
Growth rate (%) 26.87 35.30 24.75 25.52 25.40
Credit facilities and due from non-governmental entities (IRRm)
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Equity 61,827,118 59,494,290 74,396,132 63,787,294 52,485,379
Growth rate (%) 3.92 -20.03 16.63 21.53 16.39
Equity (IRRm)
2017/18 2016/17 2015/16 2014/15 2013/14
Bank Pasargad Credit facilities and dues from non-governmental entities
589,183 464,389 343,217 275,119 219,191
Total banking system Credit facilities and dues from non-governmental entities*
12,587,132 9,866,616 7,916,102 6,739,744 5,719,260
Ratio of bank Pasargad Credit facilities and dues from non-governmental entities to Total banking-system deposits (%)
4.68 4.71 4.34 4.08 3.83
Comparison of bank Pasargad Credit facilities and due from non-governmental entities (IRRm)
Information about the entire banking-system Credit facilities and due from non-governmental entities was received from the Central Bank website
2017/18 % of total 2016/17 % of
total 2015/16 % of total 2014/15 % of
total 2013/14 % of total
Current 624,651,633 98.86 481,060,600 95.56 343,102,739 94.49 272,044,848 94.51 215,047,172 94.13
Overdue debts 4,326,170 0.66 3,115,666 0.62 2,931,527 0.81 2,101,486 0.73 3,386,180 1.48
Bad debts 6,744,787 1.04 4,801,164 0.95 3,570,725 0.98 4,186,379 1.45 3,427,922 1.5
Doubtful debts 15,873,637 2.44 14,424,819 2.87 13,521,328 3.72 9,518,489 3.31 6,606,985 2.89
Total gross credit facilities 651,596,227 100 503,402,249 100 363,126,319 100 287,851,203 100 228,468,259 100
Provisions 44,247,097 6.79 27,722,565 5.51 16,661,747 4.59 10,742,251 3.73 7,813,555 3.42
Credit Facilities (IRRm)
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2017/18 2016/17 2015/16 2014/15 2013/14
Investments 16,646,262 16,747,549 17,604,497 18,615,011 14,005,814
Growth rate (%) -0.60 -4.87 -5.43 32.91 27.91
2017/18 2016/17 2015/16 2014/15 2013/14
Assets 852,177,685 649,899,350 561,481,151 447,388,074 377,270,230
Growth rate (%) 31.12 15.75 25.5 18.59 26.99
2017/18 2016/17 2015/16 2014/15 2013/14
Income 116,125,277 88,650,410 93,009,666 74,037,596 58,115,003
Growth rate (%) 30.99 -4.69 25.62 27.40 30.76
2017/18 2016/17 2015/16 2014/15 2013/14
Net Profit 2,340,624 (6,498,210) 11,633,839 12,642,696 15,668,831
Growth rate (%) * * -7.98 -19.31 18.29
Investments (IRRm)
Assets (IRRm)
Income (IRRm)
Net Profit (IRRm)
* meaningless
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Sight L/Cs 310,055 196,868 365,058 1,087,908 551,502
Term L/Cs 392,187 1,698,291 353,878 192,330 814,095
Refinance L/Cs 35,907 323,589 272,007 0 0
Total import L/Cs 738,149 2,218,748 990,943 1,280,238 1,365,597
Import documentary bills of exchange 811,079 635,476 208,978 256,486 1,475,677
Internal L/Cs (IRR billions) 63,603 567 213 398 1,311
Hard currency guarantees 66,831 296,919 47,731 37,518 120,577
Inward hard currency payment orders 800,244 422,696 379,029 266,694 475,660
Outward hard currency payment orders 1,601,313 1,704,942 277,029 1,936,603 2,637,609
International & Foreign Exchange Activities
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Operational Summar y
Bank Human CapitalIn view of the bank’s rapid development and the necessity to hire qualified employees, a precise plan was undertaken in 2017/18 like the previous years. Additionally, considering the bank’s increasing number of employees, necessary actions taken for promotions.
Education2017/18 2016/17 2015/16 2014/15 2013/14
HQ Br HQ Br HQ Br HQ Br HQ Br
PHD 12 0 11 0 11 0 10 0 14 0
Post-graduate 222 614 168 586 131 510 111 416 87 361
Graduate 407 2408 394 2524 369 2,557 369 2,481 349 2,350
College degree 93 50 82 109 86 151 84 214 85 240
Total 734 3072 655 3219 597 3,218 574 3,111 535 2,951
Total 3806 3874 3815 3,685 3,486
Percentage 19.29 80.71 16.91 83.09 15.65 84.35 15.58 84.42 15.35 86.65
Human Capital Distribution in Branches and Headquarters
Total PHD Post-graduate Graduate College degree Other Education/Year
2603 2 639 1924 4 34 Less than 10
1014 1 172 820 10 11 10 to 20
10 1 1 4 - 4 20 to 30
179 8 24 67 8 72 More than 30
3806 12 836 2815 22 121 Total
Combining human capital with education and service experience
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kers
Bos
ses
&
depu
ties
of c
ircl
es
Dep
uty
man
ager
s
of b
ranc
hes
Bra
nch
m
anag
ers
Reg
iona
l m
anag
ers
Insp
ecto
rs &
au
dito
rs
Expe
rts
Dep
uty
head
of
depa
rtm
ent
Hea
d of
de
part
men
t
Dep
utie
s of
af
fair
Man
ager
s
Con
sult
ants
Mem
bers
of t
he
boar
ds
year
3874 122 2278 510 297 265 6 31 264 20 19 4 11 34 13 2016/17
3806 139 2177 499 318 246 5 38 272 29 19 4 10 37 13 2017/18
Comparative table of organizational positions at the end of 2016/17 and 2017/18
44 BANK PASARGAD Annual Report 2017-2018 Management Report
Pasargad Group's Human CapitalHuman capital employed in Pasargad Financial Group (Including some of Bank Pasargad subsidiaries and affiliates) for the financial year 2017/18 & 2016/17 is shown in the following table:
www.bankpasargad.com 45
Managem
ent Report
Independent Auditor's R
eportFinancial S
tatements & N
otes
433 418Bank Pasargad Electronic Payment Co.
3,806 3,874Bank Pasargad
C o m p a n y 2 0 1 7 / 1 8 2 0 1 6 / 1 7
19,950 14,360Pasargad Insurance Co. (including branches)
3,003 2,908Pasargad Aryan ICT Co.
885 869Pasargad Aryan Supporting services Co.
12,079 9,539Middle East Mines and
Mineral Holding Co.(MIDHCO) (including contractors)
92 92Bank Pasargad Brokerage Co.
32 37Pasargad Equipment and
Machinery Leasing Co.
138 85Pasargad Energy
Development Co (PEDC)
315 315Arian Pasargad Construction
Management Co.
36 35Iranian Reinsurance Co.
12 12Arzeshafarinan Pasargad Co.
21 19Pasargad Leasing Co.
1,405 1,775Others
42,207 34,338Total
E-Banking ser vices
Virtual Banking
Bank Pasargad is the first bank in Iran that introduced virtual banking services providing our customers with easier access to online banking services. This system allows customers to conduct financial transactions and have access to a variety of online banking services worldwide.
Mobile Banking
Considering the extensive use of mobile phones in the Iranian society as means of communication, Bank Pasargad provides valuable mobile banking services to its clients.
Type 2017/18 2016/17 2015/16 2014/15 2013/14
POS 403,432 381,728 335,291 248,695 174,954
ATM 1,640 1,487 1,101 875 694
Debit card 3,452,360 3,833,450 3,328,154 3,218,380 3,215,496
Credit card 8,219 12,864 17,369 53,031 75,541
Pre-paid card 1,915,855 2,325,864 5,161,827 7,968,566 6,415,334
Virtual banking customers 2,321,143 1,531,945 788,580 700,960 561,044
Mobile banking customers 429,696 423,856 412,531 389,176 353,386
ATM and POS
In order to extend electronic banking all over the country, bank Pasargad has provided many hardware and software facilities which offer different types of electronic banking services to customers. Some of the main information in this respect is as follows:
BANK PASARGAD Annual Report 2017-2018 Management Report 46
I N D E P E N D E N T A U D I T O R ' S R E P O R T
2017 - 2018Annual Report
48 BANK PASARGAD Annual Report 2017-2018
INDEPENDENT AUDITOR'S REPORT
www.bankpasargad.com 49
Managem
ent Report
Independent Auditor's R
eportFinancial S
tatements & N
otes
50 BANK PASARGAD Annual Report 2017-2018 Independent Auditor's Report
www.bankpasargad.com 51
Managem
ent Report
Independent Auditor's R
eportFinancial S
tatements & N
otes
52 BANK PASARGAD Annual Report 2017-2018 Independent Auditor's Report
www.bankpasargad.com 53
Managem
ent Report
Independent Auditor's R
eportFinancial S
tatements & N
otes
54 BANK PASARGAD Annual Report 2017-2018 Independent Auditor's Report
www.bankpasargad.com 55
Managem
ent Report
Independent Auditor's R
eportFinancial S
tatements & N
otes
Managem
ent Report
Independent Auditor's R
eportFinancial S
tatements &
Notes
F I N A N C I A L S T A T E M E N T S& N O T E S
2017 - 2018Annual Report
Not
e20
-Mar
-201
8(R
esta
ted)
20
-Mar
-201
7
Liab
ilitie
s:
dues
to b
anks
and
oth
er fi
nanc
ial i
nstit
ution
s24
38,
563,
382
38,
215,
799
Cust
omer
s dep
osit
25 3
6,80
6,68
9 2
2,49
8,18
2
Divi
dend
s pay
able
26 1
,955
,347
1
,351
,150
Inco
me
tax
prov
ision
27 1
,431
,024
1
,529
,350
Acco
unts
and
not
es p
ayab
le28
5,6
93,3
98
3,3
53,8
70
Prov
ision
s and
oth
er li
abili
ties
29 1
48,4
79,9
94
81,
227,
296
Adva
nces
rece
ived
30 1
,149
,215
3
89,0
59
Cred
it fa
ciliti
es re
ceiv
ed31
1,6
21,6
52
1,0
76,1
44
Prov
ision
for e
mpl
oyee
s reti
rem
ent b
enefi
ts32
1,5
89,1
15
1,2
44,4
50
237
,289
,816
1
50,8
85,3
00
Term
dep
osits
33 5
97,2
68,3
25
467
,705
,192
Tota
l lia
biliti
es
834
,558
,141
6
18,5
90,4
92
Equi
ty:
Shar
e ca
pita
l34
50,4
00,0
0050
,400
,000
Capi
tal i
ncre
ase
(in p
rogr
ess)
340
0
lega
l res
erve
35 1
1,60
9,84
8 1
1,60
9,84
8
Oth
er re
serv
es36
3,8
69,9
49
3,8
69,9
49
Reta
ined
ear
ning
s (2
,850
,890
) (7
,315
,305
)
Tota
l equ
ity 6
3,02
8,90
7 5
8,56
4,49
2
Non
-con
trol
ling
inte
rest
s37
14,
085,
971
12,
734,
367
Tota
l lia
biliti
es a
nd e
quity
911
,673
,020
6
89,8
89,3
51
Bank
's co
mm
itmen
ts fo
r L/C
s58
.1 1
08,2
10,5
41
76,
699,
783
Bank
's c
omm
itmen
ts fo
r iss
ued
L/Gs
58.2
52,
958,
525
43,
257,
427
Oth
er B
ank'
s com
mitm
ents
58
.3 3
32,6
02
273
,979
Man
aged
fund
s58
744
7
44
Not
e20
-Mar
-201
8(R
esta
ted)
20
-Mar
-201
7
Asse
ts:
Cash
9 7
4,58
8,52
3 4
6,61
2,28
7
dues
from
ban
ks a
nd o
ther
fina
ncia
l in
stitu
tions
10 2
3,90
7,15
8 1
2,03
2,43
6
Cred
it fa
ciliti
es a
nd d
ues f
rom
gov
ernm
enta
l en
tities
110
2,5
57,1
94
Cred
it fa
ciliti
es a
nd d
ues f
rom
non
-go
vern
men
tal e
ntitie
s12
490
,426
,057
3
98,4
97,4
43
Inve
stm
ent i
n sh
ares
and
oth
er se
curiti
es13
31,
862,
900
30,
444,
114
Acco
unts
and
not
es re
ceiv
able
14 3
6,10
2,27
7 2
1,87
3,19
7
dues
from
subs
idia
ries a
nd a
ssoc
iate
s15
1,2
86,7
51
1,4
65,2
23
Oth
er a
ccou
nts r
ecei
vabl
e16
12,
350,
335
8,3
26,6
81
Prep
aym
ents
and
ord
ers
17 1
,107
,873
1
,238
,999
Inve
ntor
ies
18 5
,303
,782
5
,737
,896
Tang
ible
fixe
d as
sets
19 9
6,62
6,69
9 6
1,13
7,55
3
Inta
ngib
le a
sset
s20
11,
613,
049
7,7
43,5
82
lega
l dep
osit
21 6
4,31
5,22
5 5
3,29
7,86
7
Oth
er a
sset
s22
58,
601,
051
36,
078,
848
Cons
olid
ated
goo
dwill
23 3
,581
,340
2
,846
,031
Tota
l ass
ets
911
,673
,020
6
89,8
89,3
51
Cust
omer
s' co
mm
itmen
ts fo
r L/C
s58
.1 1
08,2
10,5
41
76,
699,
783
Cust
omer
s' co
mm
itmen
ts fo
r iss
ued
L/Gs
58.2
52,
958,
525
43,
257,
427
Oth
er c
usto
mer
s' co
mm
itmen
ts58
.3 3
32,6
02
273
,979
Man
aged
fund
s58
744
744
BANK
PAS
ARGA
D (P
JSC)
CO
NSOL
IDAT
ED S
TATE
MEN
T of
FIN
ANCI
AL P
OSIT
ION
as a
t MAR
CH 2
0, 2
018
IRRm
58 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
BANK PASARGAD (PJSC) CONSOLIDATED STATEMENT of PROFIT or LOSS for the FINANCIAL YEAR ENDED MARCH 20, 2018
Note 2017/18(Restated)2016/17
Profit from credit facilities and deposits 38 88,857,882 74,730,037
Cost for profit of deposits 43 (83,651,547) (69,772,283)
Net profit from credit facilities and deposits 5,206,335 4,957,754
Fee and commission income 44 3,936,989 3,203,554
Fee and commission cost 45 (2,124,149) (1,986,553)
Net fee and commission income 1,812,840 1,217,001
Net investment profit (loss) 39 8,354,528 7,205,947
Sales and income from services 46 52,501,980 44,511,025
Net foreign exchange transactions profit (loss) 47 13,830,359 (663,143)
74,686,867 51,053,829
Total operating income 81,706,042 57,228,584
Net other income 48 430,213 2,437,552
Cost of goods and services sold 49 (39,861,574) (29,651,979)
General and administrative expenses 50 (12,524,050) (9,787,135)
Doubtful debts expenses 51 (15,585,281) (10,570,632)
Financial cost 52 (847,439) (2,752,232)
Depreciation expenses 53 (762,701) (703,768)
Net other income & expenses 54 (7,831,587) (13,634,880)
Profit (loss) before tax 4,723,622 (7,434,490)
Income tax expense 27 (197,097) (129,921)
Previous years tax 0 0
Total income tax (197,097) (129,921)
Net profit (loss) 4,526,525 (7,564,411)
Non-controlling interests 876,300 710,338
EPS (IRR) 72.43 (135.99)
Basic earnings per share (IRR) 72.43 (143.99)
IRRm
www.bankpasargad.com 59
Managem
ent Report
Independent Auditor's R
eportFinancial S
tatements &
Notes
Not
eCa
pita
lle
gal r
eser
veO
ther
rese
rves
Reta
ined
ea
rnin
gs
Tota
l Att
ribut
able
to
ow
ners
of t
he
pare
nt c
ompa
nyN
on-c
ontr
ollin
g in
tere
sts
Tota
l equ
ity
Bala
nce
at 2
1-M
ar-2
017
50,4
00,0
00 1
1,60
9,84
8 3
,869
,949
(7
,315
,305
) 5
8,56
4,49
2 1
2,73
4,36
7 7
1,29
8,85
9
Net
pro
fit 4
,526
,525
4
,526
,525
0
4,5
26,5
25
Cons
olid
ated
adj
ustm
ents
2,8
58,9
56
2,8
58,9
56
0 2
,858
,956
prio
r per
iod
adju
stm
ents
55 (1
,938
,871
) (1
,938
,871
)0
(1,9
38,8
71)
Tota
l co
mpr
ehen
sive
inco
me
50,
400,
000
11,
609,
848
3,8
69,9
49
(1,8
68,6
95)
64,
011,
102
12,
734,
367
76,
745,
469
Capi
tal
00
00
011
,471
,502
11,4
71,5
02
Capi
tal i
ncre
ase
(reg
ister
ed)
340
00
00
00
Capi
tal i
ncre
ase
(non
-reg
ister
ed)
340
00
00
00
Non
-con
trol
ling
inte
rest
s' sh
are
of re
tain
ed
earn
ings
0
00
(982
,195
) (9
82,1
95)
(10,
119,
898)
(11,
102,
093)
Dist
ributi
on &
allo
catio
n:
lega
l res
erve
350
00
00
00
Oth
er re
serv
es36
00
00
00
0
Appr
oved
div
iden
d0
00
00
00
Tota
l 0
00
(982
,195
) (9
82,1
95)
1,35
1,60
436
9,40
9
Bala
nce
at 2
0-M
ar-2
018
50,
400,
000
11,
609,
848
3,8
69,9
49
(2,8
50,8
90)
63,
028,
907
14,
085,
971
77,
114,
878
BANK
PAS
ARGA
D (P
JSC)
CO
NSOL
IDAT
ED S
TATE
MEN
T of
CHA
NGES
in E
QUIT
Y fo
r the
FIN
ANCI
AL Y
EAR
ENDE
D M
ARCH
20,
201
8
IRRm
60 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
Not
eCa
pita
lCa
pita
l inc
reas
e(in
pro
gres
s)le
gal r
eser
veO
ther
rese
rves
Reta
ined
ea
rnin
gs
Tota
l Att
ribut
able
to
ow
ners
of t
he
pare
nt c
ompa
nyN
on-c
ontr
ollin
g in
tere
sts
Tota
l equ
ity
Bala
nce
at 2
0-M
ar-2
016
42,
000,
000
8,4
00,0
00
11,
609,
848
3,8
69,9
49
10,
924,
647
76,
804,
444
22,
062,
603
98,
867,
047
Net
pro
fit0
00
0 (7
,564
,411
) (7
,564
,411
)0
(7,5
64,4
11)
Cons
olid
ated
adj
ustm
ents
00
00
174
,613
1
74,6
13
0 1
74,6
13
prio
r per
iods
adj
ustm
ents
550
00
0 (6
31,1
91)
(631
,191
)0
(631
,191
)
Tota
l com
preh
ensi
ve in
com
e 4
2,00
0,00
0 8
,400
,000
1
1,60
9,84
8 3
,869
,949
2
,903
,658
6
8,78
3,45
5 2
2,06
2,60
3 9
0,84
6,05
8
Capi
tal
00
00
00
9,9
44,3
85
9,9
44,3
85
Capi
tal i
ncre
ase
(reg
ister
ed)
34 8
,400
,000
(8
,400
,000
)0
00
00
0
Capi
tal i
ncre
ase
(non
-reg
ister
ed)
340
00
00
00
0
Non
-con
trol
ling
inte
rest
s' sh
are
of re
tain
ed
earn
ings
0
00
0 (2
,154
,963
) (2
,154
,963
) (1
9,27
2,62
1) (2
1,42
7,58
4)
Dist
ributi
on &
allo
catio
n:
lega
l res
erve
350
00
00
00
0
Oth
er re
serv
es36
00
00
00
00
Appr
oved
div
iden
d0
00
0 (8
,064
,000
) (8
,064
,000
)0
(8,0
64,0
00)
Tota
l 8
,400
,000
(8
,400
,000
)0
0 (1
0,21
8,96
3) (1
0,21
8,96
3) (9
,328
,236
) (1
9,54
7,19
9)
Bala
nce
at 2
0-M
ar-2
017
50,
400,
000
0 1
1,60
9,84
8 3
,869
,949
(7
,315
,305
) 5
8,56
4,49
2 1
2,73
4,36
7 7
1,29
8,85
9
BANK
PAS
ARGA
D (P
JSC)
CO
NSOL
IDAT
ED S
TATE
MEN
T of
CHA
NGES
in E
QUIT
Y fo
r the
FIN
ANCI
AL Y
EAR
ENDE
D M
ARCH
20,
201
7
IRRm
www.bankpasargad.com 61
Managem
ent Report
Independent Auditor's R
eportFinancial S
tatements &
Notes
Note 2017/18 2016/17
Cashflow from operating activities
Cash Received for:
Profit and late payment penalties on credit facilities 91,502,871 87,146,294
Fee and commission 3,936,989 3,203,554
Deposits profit received 2,390,230 1,986,784
Investments profit 8,354,528 7,205,947
Income from services 52,501,980 44,511,025
Other expenses (7,401,374) (11,197,328)
Cash Paid for:
Profit of term deposits (83,651,547) (69,772,283)
Financial costs (2,971,588) (4,738,785)
Other operating costs (54,903,247) (51,376,657)
Income taxes (321,155) (2,201,547)Net cash outflow/inflow from operating activities before changes in operating Assets and liabilities 9,437,687 4,767,004
Cashflow from changes in operating assets and liabilities:
Net (increase)/decrease in liabilities and deposits:
dues to banks and other financial institutions 347,583 9,638,977
Customers deposit 14,308,507 2,589,905
Operating portion of provisions and other liabilities 65,347,907 22,702,702
Term investment deposits 132,430,737 68,499,860
Profit payable on term deposits (2,867,604) 1,829,211
Advances received 760,155 (969,802)
Operating accounts payable 2,339,527 (26,215,448)
Net (increase)/decrease in assets:
dues from banks and other financial institutions (11,874,722) 4,375,095
Credit facilities and dues principal from non-governmental entities (104,956,701) (128,408,236)
Investment in shares and other securities (1,418,786) (15,180,179)
Other accounts receivable (14,945,756) (6,441,647)
Prepayments and orders 131,126 3,257,850
legal deposit (11,017,358) (4,009,697)
Operating portion of other assets (22,522,202) 1,017,695
Cashflow generated from changes in operating assets and liabilities 46,062,413 (67,313,714)
Net cashflow from operating activities 57-2 55,500,100 (62,546,710)
Cash flow from investing activities:
Purchase of tangible fixed assets (36,103,149) 53,961,577
Proceeds from sale of fixed assets 184,431 362,530
Purchase of intangible assets (4,149,580) (1,473,318)
Net cashflow from investing activities (40,068,298) 52,850,789
Net cashflow before financing activities 15,431,802 (9,695,921)
Cash flow from financing activities:
Proceeds from capital increase 0 0
Paid dividends (1,285,925) (7,131,529)
Net cashflow from financing activities (1,285,925) (7,131,529)
Net increase/(decrease) in cash 14,145,877 (16,827,450)
Cash and cash equivalent at the beginning of the year 46,612,287 64,102,880
The effect of changes in foreign exchange rates 13,830,359 (663,143)
Cash and cash equivalent at the end of the year 74,588,523 46,612,287
Non-cash transactions 58 27,760,088 12,703,347
BANK PASARGAD (PJSC) CONSOLIDATED STATEMENT of CASH FLOWS for the FINANCIAL YEAR ENDED MARCH 20, 2018
IRRm
62 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
Not
e20
-Mar
-201
8(R
esta
ted)
20
-Mar
-201
7
Liab
ilitie
s:
dues
to b
anks
and
oth
er fi
nanc
ial i
nstit
ution
s24
38,
563,
382
38,
215,
799
Cust
omer
s dep
osit
25 3
6,94
5,38
3 2
2,58
0,98
4
Divi
dend
s pay
able
26 1
65,0
40
1,0
24,9
21
Inco
me
tax
prov
ision
27 4
16,7
41
504
,715
Prov
ision
s and
oth
er li
abili
ties
29 1
03,6
34,6
40
52,
245,
593
Prov
ision
for e
mpl
oyee
s reti
rem
ent b
enefi
ts32
981
,299
7
91,3
62
180
,706
,485
1
15,3
63,3
74
Equi
ty o
f inv
estm
ent a
ccou
nt h
olde
rs:
Term
dep
osits
33 6
09,6
44,0
82
475
,041
,686
Tota
l lia
biliti
es
790
,350
,567
5
90,4
05,0
60
Equi
ty:
Shar
e ca
pita
l34
50,
400,
000
50,
400,
000
Capi
tal i
ncre
ase
(in p
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8(R
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44
744
BANK
PAS
ARGA
D (P
JSC)
ST
ATEM
ENT
of F
INAN
CIAL
POS
ITIO
N as
at M
ARCH
20,
201
8
IRRm
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Note 2017/18 2016/17
Joint income:
Income from credit facilities 38 86,538,592 75,143,755
Income from deposits and debt securities 38 1,627,152 1,327,653
Net investment profit 39 784,093 347,224
Total Joint income 88,949,837 76,818,632
Share of Bank's resources from joint income 40 (13,319,468) (11,067,697)
Share of depositors from joint income before deduction of attorney's fee 75,630,369 65,750,935
Attorney's fee 41 (12,728,161) (10,188,422)
Share of depositors from joint income 62,902,208 55,562,513
Bonus on legal deposit of investment deposits 40 592,119 473,819
Final profit on investment deposits 63,494,327 56,036,332
On account profit on investment deposits 42 (81,047,258) (67,712,513)
Underpaid / (overpaid) profit to depositors (17,552,931) (11,676,181)
BANK PASARGAD (PJSC) STATEMENT of TERM INVESTMENT DEPOSITS PERFORMANCE for the FINANCIAL YEAR
ENDED MARCH 20, 2018
IRRm
64 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
Note 2017/18 2016/17
Income from credit facilities and deposits 38 97,138,129 83,201,762
Cost for profit of deposits 43 (85,162,995) (71,110,807)
Net income from credit facilities and deposits 11,975,134 12,090,955
Fee and commission income 44 3,936,989 3,203,554
Fee and commission cost 45 (2,122,640) (1,979,431)
Net fee and commission income 1,814,349 1,224,123
Net investment profit 39 784,092 347,224
Net foreign exchange transactions profit (loss) 47 13,830,359 (663,143)
Total operating income 28,403,934 12,999,159
Other income 48 435,708 1,897,870
General and administrative expenses 50 (9,256,886) (7,228,575)
Doubtful debts expenses 51 (16,522,253) (11,128,200)
Financial cost 52 (135,736) (2,498,928)
Depreciation expenses 53 (584,143) (539,536)
Profit before tax 2,340,624 (6,498,210)
Income tax- current year 27 0 0
Income tax- previous years 0 0
Total income tax 0 0
Net profit (Loss) 2,340,624 (6,498,210)
Earning (Loss) per share 46.44 (128.93)
Basic Earning (Loss) per share 46.44 (136.52)
BANK PASARGAD (PJSC) STATEMENT of PROFIT or LOSS for the FINANCIAL YEAR ENDED MARCH 20, 2018
Since comprehensive profit or loss statement is limited to net profit (loss) and prior period adjustments, it has not been provided.
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20-Mar-2018
Note Capital legal reserve Other reservesRetained
earnings (loss)Total
equity
Balance at 21-Mar-2017 50,400,000 11,609,848 3,869,949 (6,385,507) 59,494,290
Net profit 0 0 0 2,340,624 2,340,624
prior period adjustments 55 0 0 0 (7,796) (7,796)
Total comprehensive income 50,400,000 11,609,848 3,869,949 (4,052,679) 61,827,118
Capital increase 0 0 0 0 0
Capital increase (registered) 34 0 0 0 0 0
Capital increase (not registered) 34 0 0 0 0 0
Distribution & allocation:
legal reserve 35 0 0 0 0 0
Other reserves 36 0 0 0 0 0
Approved dividend 0 0 0 0 0
Total 0 0 0 0 0
Balance at 20-Mar-2018 50,400,000 11,609,848 3,869,949 (4,052,679) 61,827,118
BANK PASARGAD (PJSC) STATEMENT of CHANGES in EQUITY for the FINANCIAL YEAR ENDED MARCH 20, 2018
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66 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
20-Mar-2017
Note Capital
Capital increase
(in progress) legal reserveOther
reservesRetained earnings Total equity
Balance at 20-Mar-2016 42,000,000 8,400,000 11,609,848 3,869,949 8,516,335 74,396,132
Net profit 0 0 0 0 (6,498,210) (6,498,210)
prior period adjustments 55 0 0 0 0 (339,632) (339,632)
Total comprehensive income 42,000,000 8,400,000 11,609,848 3,869,949 1,678,493 67,558,290
Capital increase 0 0 0 0 0 0
Capital increase (registered) 34 8,400,000 (8,400,000) 0 0 0 0
Capital increase (not registered) 34 0 0 0 0 0 0
Distribution & allocation:
legal reserve 35 0 0 0 0 0 0
Other reserves 36 0 0 0 0 0 0
Approved dividend 0 0 0 0 (8,064,000) (8,064,000)
8,400,000 (8,400,000) 0 0 (8,064,000) (8,064,000)
Balance at 20-Mar-2017 50,400,000 0 11,609,848 3,869,949 (6,385,507) 59,494,290
BANK PASARGAD (PJSC) STATEMENT of CHANGES in EQUITY for the FINANCIAL YEAR ENDED MARCH 20, 2017
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Cashflow from operating activities
Cash Received for:
Profit and late payment penalties on credit facilities 100,612,023 95,772,133
Fee and commission 3,936,989 3,203,554
Deposits profit received 2,390,230 1,986,784
Investments profit 784,092 347,224
Other Income 435,708 1,897,870
Cash Paid for:
Profit of term deposits (85,162,995) (71,110,807)
Fee and commission (2,122,640) (1,979,431)
Financial costs (135,736) (2,498,928)
Other operating costs (12,532,923) (19,559,454)
Income taxes (87,974) (2,073,633)
Net cash generated from operating activities before changes in operating assets and liabilities 8,116,774 5,985,312
Cashflow from changes in operating assets and liabilities:
Net (increase)/decrease in liabilities and deposits:
dues to banks and other financial institutions 347,583 9,638,977
Customers deposit 14,364,399 2,656,708
Operating portion of provisions and other liabilities 48,930,083 17,673,465
Term deposits 137,469,999 70,094,215
Profit payable on Term deposits (2,867,604) 1,822,497
Net (increase)/decrease in assets:
dues from banks and other financial institutions (11,874,722) 4,375,095
Credit facilities and dues principals from governmental entities 2,557,194 (2,557,194)
Credit facilities and dues principals from non-governmental entities (143,873,398) (129,742,709)
Investment in shares and other securities 101,287 856,948
Receivable from subsidiaries and associates (1,099,663) 20,013,425
Other accounts receivable (1,223,943) 95,686
legal deposit (11,017,358) (4,009,697)
Operating portion of other assets (22,148,508) 150,904
Cashflow generated from changes in operating assets and liabilities 9,665,349 (8,931,680)
Net cashflow from operating activities 56-2 17,782,123 (2,946,368)
Cash flow from investing activities:
Purchase of fixed assets (461,487) (3,251,083)
Proceeds from sale of fixed assets 70,143 102,754
Purchase of intangible assets (2,629,265) (1,186,243)
Net cashflow from investing activities (3,020,609) (4,334,572)
Net cashflow before financing activities 14,761,514 (7,280,940)
Cash flow from financing activities:
Proceeds from capital increase 0 0
Paid dividends (859,878) (7,196,351)
Net cashflow from financing activities (859,878) (7,196,351)
Net increase/(decrease) in cash 13,901,636 (14,477,291)
Cash and cash equivalent at the beginning of the year 46,216,433 61,356,867
The effect of changes in foreign exchange rates 13,830,359 (663,143)
Cash and cash equivalent at the end of the year 73,948,428 46,216,433
Non-cash transactions 57 5,713,610 2,197,061
BANK PASARGAD (PJSC) STATEMENT of CASH FLOWS for the FINANCIAL YEAR ENDED MARCH 20, 2018
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68 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
1- ABOUT BANK
1-1- Background
Bank Pasargad was registered under No-254300 by the Tehran Companies Registrer Office on September 4,
2005 and the Central Bank of the Islamic Republic of Iran (CBI) issued The Banking Operation License No-
2849 on September 13, 2005 in favor of it. Bank Pasargad was listed on the Tehran Stock Exchange (TSE) on
February 6, 2011 and was first traded on August 6, 2011. Bank Pasargad's head office is located at No. 430,
Mirdamad Blvd., Tehran 19697-74511, Iran.
1-2- Main Activities
In accordance with article 3 of articles of association, Bank Pasargad does all monetary, financial and banking
activities in accordance and compliance with the regulations set by CBI.
1-3- Number of Branches
Number of bank branches at the year end is as follows:
2017/18 2016/17
Tehran province branches 207 207
Other province branches 118 118
Free-trade zones branches 2 2
327 327
1-4- Employment Status
number of bank employees & group at the year end is as follows:
Group Bank
NOTE 2017/18 2016/17 2017/18 2016/17
Head office 734 655 734 655
Tehran province branches 1,969 2,065 1,969 2,065
Other province branches 1,066 1,118 1,066 1,118
Free zones branches 37 36 37 36
Subsidiaries 1-4-1 6,727 5,407 0 0
10,533 9,281 3,806 3,874
1-4-1- The main reason for the decline in the number of employees in subsidiaries was due to sale of Middle
East Mines & Mineral Industries Development Holding Co. and Mabna Khavar Miyaneh Co. which were subject
to consolidation.
2- BASIS FOR PREPARATION OF FINANCIAL STATEMENTS
The Bank's financial statements are prepared based on accounting standards and regulations of Central Bank
of Iran. Details of accounting procedures include changes during the year are mentioned in notes 5 and 6.
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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3- CURRENCY UNIT OF REPORTING AND OPERATING
The financial statement items are measured with IRR which is Iran's main currency. These items are provided in
term of IRRm for better understanding unless in case which are explicitly mentioned in financial statements and
disclosure notes.
4- USING JUDGMENT AND ESTIMATION
To prepare financial statements, the management exerts judgments, estimates and assumptions in determining
the amounts in the financial statements. Actual results may be different from estimates. These estimates and
assumptions are based on historical records, and management continually reviews them by comparing with real
events.
5- MEASUREMENT PRINCIPLES
5-1- Financial statement are prepared based on "historical cost" principle.
5-2- Consolidated financial statements of the bank and its relevant subsidiaries are as described in note
13-2-1 and have been prepared after elimination of the intra group transactions and any unrealized profit.
5-3- For subsidiaries acquired during the year, results of operations are reflected in the consolidated financial
statements from date of acquisition of effective control and for subsidiaries sold during the year, results of op-
eration up to disposal date would be reflected in the consolidation.
6- CHANGE IN ACCOUNTING POLICIES
The accounting policies mentioned in note 7 have been adopted in preparation of financial statements of all
reporting periods according to consistency principle.
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
70 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
7-2- Tangible Fixed assets
7-2-1- Fixed assets are recorded at cost. Upgrade and overhauling expenditures which enhance the useful
life, capacity or quality of such assets are capitalized and depreciated during their remaining useful life. Ordi-
nary repair and maintenance charges which are performed to maintain fixed assets in operating condition, are
recorded as expense when incurred and reflect in period profit or loss account.
7-2-2- Fixed assets are depreciated in accordance with Article 149 of the Direct Taxation Act Schedule, using
the following rates and methods:
profit of credit facilities recievable:
Consolidation (Group) Parent company
Evaluation method
Long-term Investments:
Investment in subsidiaries Subject to Consolidation Cost (less each accumulated impairment)
Investment in associates Equity method Cost (less each accumulated impairment)
Other long-term investments Cost (less each accumulated impairment) Cost (less each accumulated impairment)
Short-term investments:
Liquid investments Lower of cost or net sales value of investment portfolio
Lower of cost or net sales value of investment portfolio
Other short-term investments Lower of cost or net sales value of each investment
Lower of cost or net sales value of each investment
Revenue recognition method
Investment in subsidiaries subject to Consolidation Upon approval of dividend by investee's AGM (up to authorization of financial statement)
Investment in unconsolidated subsidiaries Upon approval of dividend by investee's AGM
Upon approval of dividend by investee's AGM (up to authorization of financial statement)
Investment in associates Equity method Upon approval of dividend by investee's AGM (up to authorization of financial statement)
Other long-term and short-term investments
Upon approval of dividend by investee's AGM (up to SFP date)
Upon approval of dividend by investee's AGM (up to SFP date)
7- SIGNIFICANT ACCOUNTING POLICIES
7-1- Investments
Fixed Assets Dep. Rate Dep. Method
Buildings 25 years Straight line
Installations 20% Descending method
Motor vehicles 25% Descending method
Computer hardware 3 years Straight line
Communication equipment 10 years Straight line
ATM 3 years Straight line
POS 3 years Straight line
Furniture & fixtures 10 years Straight line
Construction in leasehold properties 3 years Straight line
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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7-2-3- For fixed assets acquired during the month, depreciation will start from the following month. In case the
fixed assets are not used due to working halts or other reasons, depreciation is calculated on 30% of above
mentioned rates.
7-3- Intangible assets
Intangible assets, except for business goodwill, are recorded at cost. Business goodwill is not impaired, im-
pairment testing is performing at the end of each fiscal year and If necessary, the required provision will be
provided. Software are amortized over three years using the straight-line method.
7-4- Recognition of Income and late payment penalties on credit facilities and commissions
With respect to the enactment of the meeting No. 1044, dated July 16th, 2005 of the Money and Credit
Council and the circular No. 772/MB dated July 18th, 2005, issued by the CBI, the profit derived from credit
facilities have been recognized on accrual basis. Also according to circular No. 94/258090 dated November
30th, 2015 no accrual income had been recognized for doubtful debts. Accordingly the recognition method of
the bank's income are as bellow:
Type of income Basis for recognition of income
Profit of credit facilities:
Current debt Accrual
Overdue debt Accrual
Bad debt Accrual
Doubtful debt Cash
Late payement penalties:
Current debt Accrual
Overdue debt Accrual
Bad debt Accrual
Doubtful debt Cash
Commissions:
L/Gs commissions Cash
Other services commissions Cash
Qard-al-hasan facilities commissions Cash
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
72 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
7-5- Basis for determination of the share of depositors from joint income:
In accordance with the Usury-free Banking Law ratified on August 30th,1983 and its executive directives and
with respect to the circular No. 94/69643 dated June 10th, 2015 , joint income, bank's allocation of joint
resources, share of depositors from joint income are calculated and reported in the statement of investment
deposits performance.
7-6- Classification of credit facilities:
Credit facilities are classified based on "directive of classification of financial institutions" approved by the Mon-
ey and Credit Council subject to the circular No. MB/2823 dated February 24th,2007 of the CBI, with respect
to the factors of late payment as below, customer's financial status and industry or activity field:
Current debt:
Maximum 2 months overdue or payment cut off date
Overdue debt:
2 to 6 month overdue or payment cut off date
Bad debt:
6 to 18 months overdue or payment cut off date
Doubtful debt:
More than 18 months overdue or payment cut off date
7-7- Provision of doubtful accounts
Provisions for credit facilities are calculated based on the "directive of doubtful provision calculation of financial
institutions" approved by the Money and Credit Council (subject to the circular No. 91/21270 dated April 19th
2012, by the CBI) as follows:
1. General provision (except for facilities for which specific provision is provided for them) are calculated equal
to 1.5% of the total balance of facilities.
2. Specific provision concerning the balance of overdue, bad and doubtful debt categories,after deducting of
updated value of collaterals of each item, are calculated by the following determined coefficients:
Type Coefficient
General provision (except for facilities for which specific provision is provided for them) at least 1.5%
Specific provision
Overdue category 10%
Bad debt category 20%
Doubtful debt category (based on customers capabilities) 50% to 100%
Doubtful debt category overdue for five years or more 100%
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
3. For the facilities which have elapsed more than 5 years from the maturity date of their principal and profit,
specific provision is considered equal to 100% without deducting the collaterals value.
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BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
7-8- Provision for employees' retirement benefits
A provision, equivalent to the latest monthly salary and benefits for each full year of service, is provided in the accounts
to cover employees' retirement benefits.
7-9- Commitments for employees' retirement benefits
The bank's employees are under the coverage of Social Security Organization insurance. Therefore, no provision is
provided in accounts for commitment for Employees' Retirement Benefits.
7-10- Foreign currency conversion
7-10-1- Local accounts
Foreign currency monetary amounts are reported using the "official exchange rates" determined by CBI at SFP
date and non-monetary items carried at historical cost should be reported using the exchange rate at the date
of transaction. Exchange differences arising when monetary items are settled or when monetary items are con-
verted, are reported in Statement of Profit or Loss of the period.
7-10-2- Accounts from foreign operations
Assets and liabilities of foreign branches are converted at the closing rate at the SFP date and Income and ex-
panses are converted at the date of transaction's rate. All resulting exchange differences are recognised in the
statement of comprehensive income and classified under shareholders' equity section of statement of financial
position. The exchange differences arising on conversion of monetary items that form part of the entity's net
investment in foreign operations are recognised in the statement of copmrehensive income and will be classified
under shareholders' equity section of statement of financial position until disposal of the net investment.
7-11- Treasury stock
Bank can reacquire 10 percent of its shares according to Law of Removal of Competitive Production Obstacles
and Law of Financial System Improvement. The bank's treasury stock is reported at cost at the date of aquisi-
tion and any difference arising from purchase and sale of treasury stocks is reported in the equity section.
7-12- Goodwill arising from consolidation
The accounting method used for business combinations is "purchase method". Goodwill is recognized as the
differences between the cost of investment aquisition and fair value of net identifiable assets and liabilities in
subsidiaries subject to consolidation and associate companies subject to equity method at the date of aquisi-
tion and is amortized over a 20 year period by direct method. Goodwill arising from acquisition of associates
is reflected in book value of long-term investment in the consolidated statement of financial position of the
associates.
8- "OTHER" IN FINANCIAL STATEMENTS NOTES
Since some accounts consist of too many items, some items of each note has been reported under title
"Other" that include trivial items with ceilings of 10% of the total amount of the note.
74 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
9- CASH
Group Bank
NOTE 20-Mar-2018 20-Mar-2017 20-Mar-2018 20-Mar-2017
Cash in hand - IRR 9-1 2,290,360 1,514,195 2,283,027 1,506,024
Cash in hand - foreign currency 9-2 4,137,633 1,899,301 4,109,112 1,895,560
Items in transit - IRR 0 0 0 0
Items in transit - foreign currency 0 0 0 0
Demand deposits at the Central Bank (unrestricted) 9-3 2,190,790 101,236 2,190,790 101,236
Deposits at other banks and financial institutions (unrestricted) 9-4 65,365,500 42,713,613 65,365,500 42,713,613
Petty cash 17,599 18,230 0 0
Others 586,641 365,712 0 0
74,588,523 46,612,287 73,948,428 46,216,433
9-1- Cash in hand (IRR and foreign currency) up to IRR 5 bn is fully insured against robbery and fire by
Pasargad Insurance Co.
9-2- Cash in hand (foreign currency) consists of USD 43.985.697, EUR 33.952.063, GBP281.935,
UAD1.088.245, CHF 19.954, TRY 2,560, CHY 1,200.
9-3- Demand deposits at the Central Bank (unrestricted)
20-Mar-2018 20-Mar-2017
ASSETS:
Demand deposits at the Central Bank - foreign currency 357,964 101,236
Demand deposits at the Central Bank - IRR 1,832,826 0
Demand deposits at the Central Bank of other countries 0 0
2,190,790 101,236
9-4- Deposits at other banks and financial institutes (unrestricted)
20-Mar-2018 20-Mar-2017
Demand deposits at other local banks and financial institutions - IRR 64,031 47,962
Demand deposits at other local banks and financial institutions - foreign currency 2,088,322 3,094,687
Term deposits at other local banks and financial institutions - IRR 694,359 812,714
Term deposits at other local banks and financial institutions - foreign currency 0 0
Demand deposits at foreign banks - foreign currency 62,518,788 38,758,251
Term deposits at foreign banks - foreign currency 0 0
65,365,500 42,713,613
9-5- Restricted deposits at banks are classified as "dues from banks".
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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10- DUES FROM BANKS AND OTHER FINANCIAL INSTITUTIONS
Note 20-Mar-2018 20-Mar-2017
dues from CBI 10-2 7,158,362 7,303,500
dues from other banks and financial institutions 10-3 16,748,796 4,728,936
23,907,158 12,032,436
10-1- dues from banks without any restriction on withdrawal, has been classified as cash.
10-2- dues from CBI
Note 20-Mar-2018 20-Mar-2017
Demand deposits at the Central Bank -IRR 0 0
Demand deposits at the Central Bank - foreign currency 0 0
Demand deposits at the Central Bank of other countries 0 0
Term deposits at CBI - IRR (restricted) 10-2-1 2,556,280 2,701,419
Bonus receivable on legal deposit 0 0
Other dues 10-2-2 4,602,082 4,602,081
7,158,362 7,303,500
10-2-1- long-term deposit with the Central Bank of the Islamic Republic of Iran,the IRR deposite at the re-
frence exchange rate in the years 2011/12 and 2012/13 has been opened
for 90% of the L/Cs,which is the equivalent (currency) to the exchange rate of the deposite received for the
foreign currency received by the foreign banks.These deposits (received and paid) will be renewed up to the
3-month maturity target set at 0.1% interest rate.
10-2-2- OTHER DUES
10-2-2-1- The amount of IRR 1,452 bn was withdrawn from Bank Pasargad's account in accordance with
the Foreign Currency Coordinating Group's approval and the CBI director's order that the bank is pursuing the
collection of the amount.
10-2-2-2- According to CBI Meeting Commitments Guidelines (numbers 60/1038 dated March 3, 2013 and
60/1015 dated December 7, 2013) Bank Pasargad had recorded foreign exchange commitments in CBI sys-
tem with reference exchange rate and converted the asset liability difference with translational exchange rate at
the end of fiscal year 2014/15. The IRR 3,150 bn difference has been recorded in due from CBI account, which
settlement will be conditional on preparing foreign exchange special audit report and CBI approval, which is
still in progress.
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
IRRm
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76 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
10-3- dues from other banks and financial institutions
Note 20-Mar-2018 20-Mar-2017
0 0
Demand deposits at other local banks and financial institutions - IRR 0 0
Demand deposits at other local banks and financial institutions - foreign currency 0 0
Term deposits at other local banks and financial institutions - IRR (restricted) 10-3-1 1,100,370 2,000
Term deposits at other local banks and financial institutions - foreign currency stricted) 0 0
Demand deposits at foreign banks - foreign currency 0 0
Term deposits at foreign banks - foreign currency (restricted) 4,713,735 4,613,292
Interbank deposits paid to other local banks and financial institutions 10-3-2 10,860,000 0
Payments for clearing other bank's checks 74,691 113,644
Other 0 0
16,748,796 4,728,936
10-3-1- Including a claim for IRR 1090 bn of the Pasargad Bank from the dissociated credit institution Samen
al-hajj in the minutes of the supreme committee organizing unformed monetary market aprroved by Central
Bank executive board on Jun17,2017, the bank's objections to the central bank were announced in the six
letter, the first of which was the letter no. 105/s19/96 dated 30 July 2017 and the last of which was letter no
117/s3660/96 dated 28 Jan 2018.
10-3-2- Interbank deposits paid to banks includes IRR 3800 bn Shahr bank,IRR 3050 bn Tourism bank,IRR
3000 bn Tejarat bank and IRR 1010 bn ghavamin bank.
IRRm
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eportFinancial S
tatements &
Notes
11- CREDIT FACILITIES AND DUES FROM GOVERNMENTAL ENTITIES
Group Bank
20-Mar-2018 20-Mar-2017 20-Mar-2018 20-Mar-2017
Installment sales 0 0 0 0
Ju'alah 0 0 0 0
Hire-purchase 0 0 0 0
Qard-al-hasan 0 0 0 0
Mudarabah 0 0 0 0
Musharakah 0 2,596,136 0 2,596,136
Debt purchase 0 0 0 0
Debtors for paid L/Cs 0 0 0 0
Credit facilities in foreign currency 0 0 0 0
Debtors for paid L/Gs 0 0 0 0
Debtors for paid credit cards 0 0 0 0
Murabaha 0 0 0 0
Total 0 2,596,136 0 2,596,136
Less:
Deferred income (0) (0) (0) (0)
Outstanding profit (0) (0) (0) (0)
General provision of doubtful debts (0) (38,942) (0) (38,942)
Specific provision of doubtful debts (0) (0) (0) (0)
0 2,557,194 0 2,557,194
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
IRRm
78 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
20-M
ar-2
018
20-M
ar-2
017
Bala
nce
Profi
t and
co
mm
issi
ons
rece
ivab
le
Late
pay
men
t pe
nalti
es
rece
ivab
le
Defe
rred
in
com
e O
utst
andi
ng
inco
me
Tota
lpr
ovis
ion
of
doub
tful
deb
ts
Net
bal
ance
Net
bal
ance
Inst
allm
ent s
ales
00
0(0
)(0
)0
(0)
00
Ju'a
lah
00
0(0
)(0
)0
(0)
00
Hire
-pur
chas
e0
00
0(0
)0
(0)
00
Mud
arab
ah0
00
0(0
)0
(0)
00
Mus
hara
kah
00
00
(0)
0(0
)0
2,55
7,19
4
Debt
pur
chas
e0
00
(0)
(0)
0(0
)0
0
Mur
abah
a0
00
(0)
(0)
0(0
)0
0
Qar
d-al
-has
an0
00
0(0
)0
(0)
00
Cred
it fa
ciliti
es in
fore
ign
curr
ency
00
0(0
)(0
)0
(0)
00
Debt
ors f
or p
aid
L/Cs
0
00
0(0
)0
(0)
00
Debt
ors f
or p
aid
L/Gs
0
00
0(0
)0
(0)
00
Debt
ors f
or p
aid
cred
it ca
rds
00
00
(0)
0(0
)0
0
00
0(0
)(0
)0
(0)
02,
557,
194
11-1
- B
ank
Pas
arg
ad's
cre
dit
faci
litie
s an
d d
ues
fro
m g
ove
rnm
enta
l ent
ities
BANK
PAS
ARGA
D (P
JSC)
NO
TES
to C
ONSO
LIDA
TED
FINA
NCIA
L ST
ATEM
ENTS
FIN
ANCI
AL Y
EAR
ENDE
D M
ARCH
20,
201
8
IRRm
www.bankpasargad.com 79
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Independent Auditor's R
eportFinancial S
tatements &
Notes
12- CREDIT FACILITIES AND DUES FROM NON-GOVERNMENTAL ENTITIES
Group Bank
20-Mar-2018 20-Mar-2017 20-Mar-2018 20-Mar-2017
Installment sales 5,429,640 5,118,101 5,045,106 4,550,504
Ju'alah 1,406,419 1,014,912 1,406,419 1,014,912
Hire-purchase 3,650 5,649 3,411 3,158
Qard-al-hasan 2,361,700 1,848,759 2,361,700 1,848,759
Mudarabah 18,659,928 18,550,719 18,659,928 18,550,719
Musharakah 379,075,113 333,934,835 479,094,889 398,397,344
Debt purchase 701,333 344,206 701,333 344,206
Debtors for paid L/Cs 12,286,085 12,467,205 12,286,085 12,467,205
Credit facilities in foreign currency 128,564,059 63,486,690 128,564,059 63,486,690
Debtors for paid L/Gs 1,953,226 1,734,379 1,953,226 1,734,379
Debtors for paid credit cards 268,355 542,098 268,355 542,098
Murabaha 1,251,717 462,276 1,251,717 462,276
Total 551,961,225 439,509,829 651,596,228 503,402,250
Less:
Deferred income (9,392,829) (9,917,134) (9,333,471) (9,917,134)
Outstanding profit (8,832,249) (3,930,285) (8,832,249) (3,930,285)
General provision of doubtful debts (8,402,099) (6,692,417) (9,339,106) (7,250,015)
Specific provision of doubtful debts (34,907,991) (20,472,550) (34,907,991) (20,472,551)
490,426,057 398,497,443 589,183,411 461,832,266
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
IRRm
80 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
20-M
ar-2
018
20-M
ar-2
017
Bala
nce
Profi
t and
co
mm
issi
ons
rece
ivab
le
Late
pay
men
t pe
nalti
es
rece
ivab
le
Defe
rred
in
com
e O
utst
andi
ng
inco
me
Tota
lpr
ovis
ion
of
doub
tful
deb
ts
Net
bal
ance
Net
bal
ance
Inst
allm
ent s
ales
4,9
20,6
11
105
,955
1
8,54
0 (2
,206
,375
) (2
3,18
7) 2
,815
,544
(1
46,3
10)
2,6
69,2
34
2,4
62,2
68
Ju'a
lah
1,3
96,5
59
9,3
63
497
(3
81,0
84)
(558
) 1
,024
,777
(2
3,81
8) 1
,000
,959
7
38,4
53
Hire
-pur
chas
e 8
20
2,0
91
502
0
(569
) 2
,844
(2
,499
) 3
45
1,2
79
Mud
arab
ah 9
,708
,823
8
,163
,945
7
87,1
61
0 (1
,521
,676
) 1
7,13
8,25
3 (5
,549
,775
) 1
1,58
8,47
8 1
4,38
1,94
4
Mus
hara
kah
393
,738
,549
8
1,63
8,41
3 3
,717
,927
0
(6,5
62,2
55)
472
,532
,634
(3
0,80
6,05
1) 4
41,7
26,5
83
376
,094
,428
Debt
pur
chas
e 6
04,4
77
96,
741
115
(6
1,36
6)0
639
,967
(1
0,38
7) 6
29,5
80
290
,024
Mur
abah
a 1
,094
,077
1
57,5
32
107
(1
43,9
84)
0 1
,107
,732
(1
8,16
1) 1
,089
,571
3
88,2
59
Qar
d-al
-has
an 2
,357
,403
4
,291
6
0
0 2
,361
,700
(3
7,35
2) 2
,324
,348
1
,807
,738
Cred
it fa
ciliti
es in
fore
ign
curr
ency
122
,992
,324
5
,520
,151
5
1,58
4 (6
,540
,662
)0
122
,023
,397
(2
,009
,207
) 1
20,0
14,1
90
54,
844,
317
Debt
ors f
or p
aid
L/Cs
6
,811
,685
5
,445
,914
2
8,48
5 0
(456
,339
) 1
1,82
9,74
5 (5
,209
,897
) 6
,619
,848
9
,189
,296
Debt
ors f
or p
aid
L/Gs
1
,206
,089
1
4,55
4 7
32,5
83
0 (2
67,6
65)
1,6
85,5
61
(407
,550
) 1
,278
,011
1
,125
,157
Debt
ors f
or p
aid
cred
it ca
rds
171
,596
1
,081
9
5,67
7 0
0 2
68,3
54
(26,
090)
242
,264
5
09,1
03
545
,003
,013
1
01,1
60,0
31
5,4
33,1
84
(9,3
33,4
71)
(8,8
32,2
49)
633
,430
,508
(4
4,24
7,09
7) 5
89,1
83,4
11
461
,832
,266
12-1
-Ban
k P
asar
gad
cre
dit
faci
litie
s an
d d
ues
fro
m n
on-
go
vern
men
tal e
ntiti
es
BANK
PAS
ARGA
D (P
JSC)
NO
TES
to C
ONSO
LIDA
TED
FINA
NCIA
L ST
ATEM
ENTS
FIN
ANCI
AL Y
EAR
ENDE
D M
ARCH
20,
201
8
IRRm
www.bankpasargad.com 81
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eportFinancial S
tatements &
Notes
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
12-2- Classification of credit facilities and dues from non-governmental entities - classification of credit
facilities and dues from non governmental entitites according to instruction of Money and Credit Council is
as follows:
20-Mar-2018 20-Mar-2017
Current debts Overdue debts Bad debts Doubtful debts Total Total
Installment sales 4,994,375 330 2,118 48,284 5,045,107 4,550,504
Ju'alah 1,304,848 100,204 279 1,088 1,406,419 1,014,912
Hire-purchase 2,593 0 0 819 3,412 3,158
Mudarabah 14,619,287 551,460 793,328 2,695,854 18,659,929 18,550,719
Musharakah 458,052,526 3,201,587 5,779,851 12,060,924 479,094,888 398,397,344
Debt purchase 701,333 0 0 0 701,333 344,206
Murabaha 1,246,521 4,629 567 0 1,251,717 462,276
Qard-al-hasan 2,360,947 119 635 0 2,361,701 1,848,759
Credit facilities in foreign currency 128,096,218 467,841 0 0 128,564,059 63,486,690
Debtors for paid L/Cs 11,653,750 0 0 632,334 12,286,084 12,467,205
Debtors for paid L/Gs 1,518,891 0 0 434,334 1,953,225 1,734,379
Debtors for paid credit cards 100,345 0 168,009 0 268,354 542,098
624,651,634 4,326,170 6,744,787 15,873,637 651,596,228 503,402,250
Less:
Deferred income (9,333,471) 0 0 0 (9,333,471) (9,917,134)
Outstanding profit (8,832,249) 0 0 0 (8,832,249) (3,930,284)
Net credit facilities before deducting doubtful debts 606,485,914 4,326,170 6,744,787 15,873,637 633,430,508 489,554,832
General provision of doubtful debts (9,339,106) 0 0 0 (9,339,106) (7,250,015)
Specific provision of doubtful debts 0 (300,859) (983,847) (33,623,285) (34,907,991) (20,472,551)
Balance at 20-mar-2018 597,146,808 4,025,311 5,760,940 (17,749,648) 589,183,411 461,832,266
Balance at 20-mar-2017 459,963,168 2,959,403 4,166,091 (5,256,396) 461,832,266
12-3- Movements in provision of doubtful debts:
20-Mar-2018 20-Mar-2017
General provision
Specific provision Total General
provisionSpecific
provision Total
Balance at the beginning of the year 7,250,015 20,472,551 27,722,566 5,412,828 11,248,919 16,661,747
Written off 0 (36,664) (36,664) 0 (28,439) (28,439)
Provision for current year 2,089,091 14,472,104 15,585,281 1,837,187 9,252,071 11,089,258
Balance at the end of the year 9,339,106 34,907,991 44,247,097 7,250,015 20,472,551 27,722,566
IRRm
IRRm
82 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
12-4- credit facilities in Foreign currency, categorized by paid resources:
20-Mar-2018 20-Mar-2017
Current Overdue Bad Doubtful Total Total
Internal resources 44,401,301 467,841 0 0 44,869,142 8,135,577
National Development Fund of Iran 83,694,917 0 0 0 83,694,917 55,351,113
128,096,218 467,841 0 0 128,564,059 63,486,690
12-5- Credit facilities and dues from non-governmental entities, categorized by maturity date and
profit rate:
20-Mar-2018 20-Mar-2017
24% and More 21-24% 18-21% 15-18% 12-15% 12% and
lower Total Total
Up to 20-Mar-2018 59,225,995 31,039,592 249,955 26,314,812 43,521 4,554,570 121,428,445 84,028,827
Up to 20-Mar-2019 150,591,524 64,970,828 600,739 170,258,928 6,548 31,572,140 418,000,707 340,468,132
Up to 19-Mar-2020 6,437,938 5,577,561 11,389 1,312,282 4,957 42,990,999 56,335,126 19,246,519
Up to20-Mar-2021 2,575,514 453,491 815 1,532,608 3,595 74,001 4,640,024 38,452,715
Up to 20-Mar-2022 617,648 26,165,991 4,263 599,740 42,854 5,595,710 33,026,206 7,358,639
219,448,619 128,207,463 867,161 200,018,370 101,475 84,787,420 633,430,508 489,554,832
20 March 2017 194,415,825 105,100,498 2,521,559 125,541,235 150,837 61,824,878 489,554,832
12-6- Credit facilities and dues from non-governmental entities, categorized by type of collateral:
2017/18 2016/17
Deposit, participation bond 55,998,814 11,700,360
Letter of Guarantee 218,773,315 21,638,324
Share 166,827,783 10,721,251
Binding contract 65,306,685 45,185,911
Land, building and machinery 370,202,805 30,303,444
Check and promissory note 478,746,778 370,005,542
1,355,856,180 489,554,832
IRRm
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tatements &
Notes
Inst
allm
ent
sale
sJu
'ala
hHi
re-
purc
hase
Mud
arab
ahM
usha
raka
hDe
bt
purc
hase
Mur
abah
aQ
ard-
al-
hasa
n
Fore
ign
curr
ency
cre
dit
faci
lities
Debt
ors f
or
paid
L/C
sDe
btor
s for
pa
id L
/Gs
Debt
ors f
or
paid
cre
dit
card
sTo
tal
Prin
cipal
cred
it fa
cililti
es:
Bala
nce
at 2
0-M
ar-2
017
2,48
9,19
367
0,99
981
910
,195
,600
316,
531,
694
243,
849
324,
155
1,83
9,40
953
,582
,942
8,02
6,60
673
6,86
243
7,01
939
5,07
9,14
7
Gran
ted
durin
g th
e ye
ar46
5,35
256
0,87
20
1,31
6,77
043
8,15
6,33
896
9,37
61,
272,
398
1,49
2,50
885
,054
,981
15,6
38,6
672,
877,
927
480,
154
548,
285,
343
Colle
ction
dur
ing
the
year
(2
40,3
10)
(216
,397
)(0
) (1
,803
,548
) (3
60,9
49,4
84)
(670
,114
) (6
46,4
60)
(974
,514
) (2
2,18
6,26
1) (1
6,85
3,58
8) (2
,408
,700
) (7
45,5
77)
(407
,694
,953
)
Bala
nce
at 2
0-M
ar-2
018
2,71
4,23
51,
015,
474
819
9,70
8,82
239
3,73
8,54
854
3,11
195
0,09
32,
357,
403
116,
451,
662
6,81
1,68
51,
206,
089
171,
596
535,
669,
537
Profi
t and
late
pay
men
t pe
nalti
es o
n cr
edit
facil
ities
Bala
nce
at 2
0-M
ar-2
017
103,
019
82,8
122,
086
7,68
2,08
379
,024
,599
50,9
8670
,450
7,56
92,
307,
265
4,23
8,21
880
1,51
810
5,08
094
,475
,685
Incr
ease
dur
ing
the
Year
11
1,07
250
6,56
525
423
,522
,188
81,8
65,6
4917
8,05
330
6,51
910
,293
7,72
3,33
52,
151,
165
279,
389
47,7
8611
6,70
2,26
8
Colle
ction
dur
ing
the
year
(1
12,7
82)
(580
,075
) (3
16)
(23,
774,
841)
(82,
096,
163)
(132
,183
) (2
19,3
29)
(13,
565)
(4,4
58,8
65)
(1,3
71,3
22)
(601
,435
) (5
6,10
7) (1
13,4
16,9
83)
Bala
nce
at 2
0-M
ar-2
018
101,
309
9,30
22,
024
7,42
9,43
078
,794
,085
96,8
5615
7,64
04,
297
5,57
1,73
55,
018,
061
479,
472
96,7
5997
,760
,970
Prov
ision
of D
oubtf
ul
Debt
s:
Bala
nce
at 2
0-M
ar-2
017
(129
,945
) (1
5,35
8) (1
,626
) (3
,495
,739
) (1
9,46
1,86
5) (4
,810
) (6
,347
) (3
9,24
0) (1
,045
,890
) (3
,075
,528
) (4
13,2
22)
(32,
996)
(27,
722,
566)
Prov
ision
of c
urre
nt ye
ars
16,
365
(8,4
60)
(873
) (2
,054
,036
) (1
1,38
0,29
9) (5
,577
) (1
1,81
4) 1
,338
(9
63,3
17)
(2,1
34,3
69)
5,6
72
6,9
06
(16,
561,
194)
Writ
en o
ff 36
,113
550
36,6
63
Bala
nce
at 2
0-M
ar-
2018
(1
46,3
10)
(23,
818)
(2,4
99)
(5,5
49,7
75)
(30,
806,
051)
(10,
387)
(18,
161)
(37,
352)
(2,0
09,2
07)
(5
,209
,897
) (4
07,5
50)
(26,
090)
(44,
247,
097)
Net
cred
it fa
ciliti
es:
Bala
nce
at 2
0-M
ar-2
017
2,46
2,26
773
8,45
31,
279
14,3
81,9
4437
6,09
4,42
829
0,02
538
8,25
81,
807,
738
54,8
44,3
179,
189,
296
1,12
5,15
850
9,10
346
1,83
2,26
6
Bala
nce
at 2
0-M
ar-
2018
2,66
9,23
41,
000,
958
344
11,5
88,4
7744
1,72
6,58
262
9,58
01,
089,
572
2,32
4,34
812
0,01
4,19
06,
619,
849
1,27
8,01
124
2,26
558
9,18
3,41
1
12-7
- C
red
it fa
cilil
ties
and
due
s fr
om
no
n-g
ove
rnm
enta
l ent
ities
hav
e th
e fo
llow
ing
mo
vem
ents
:
* P
rofit
and
late
pay
men
t pen
altie
s on
cre
dit f
acili
ties
incl
udes
inc
ome
from
cre
dit f
acili
ties
and
late
pay
men
t pen
altie
s
BANK
PAS
ARGA
D (P
JSC)
NO
TES
to C
ONSO
LIDA
TED
FINA
NCIA
L ST
ATEM
ENTS
FIN
ANCI
AL Y
EAR
ENDE
D M
ARCH
20,
201
8
IRRm
84 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
Inst
allm
ent
sale
sJu
'ala
hHi
re-
purc
hase
Mud
arab
ahM
usha
raka
hDe
bt
purc
hase
Mur
abah
aQ
ard-
al-
hasa
n
Fore
ign
curr
ency
cre
dit
faci
lities
Debt
ors f
or
paid
L/C
sDe
btor
s for
pa
id L
/Gs
Debt
ors f
or
paid
cre
dit
card
sTo
tal
Profi
t rec
eiva
bla
on cr
edit
facil
ities
:
Bala
nce
at 2
0-M
ar-2
017
80,7
8381
,755
1,63
47,
062,
192
76,2
30,8
7750
,935
70,4
4143
62,
298,
133
4,20
9,73
37,
400
9,45
690
,103
,775
Incr
ease
dur
ing
the
Year
10
6,69
247
5,84
920
522
,754
,150
68,3
06,1
3917
7,61
930
5,68
89,
449
7,61
3,44
52,
151,
165
19,5
5918
,306
101,
938,
266
Colle
ction
dur
ing
the
year
(1
04,7
05)
(548
,799
) (3
17)
(23,
174,
073)
(69,
460,
859)
(131
,813
) (2
18,5
97)
(5,5
94)
(4,3
91,4
27)
(1,3
71,3
22)
(12,
405)
(26,
680)
(99,
446,
591)
Bala
nce
at 2
0-M
ar-2
018
82,7
708,
805
1,52
26,
642,
269
75,0
76,1
5796
,741
157,
532
4,29
15,
520,
151
4,98
9,57
614
,554
1,08
292
,595
,450
late
pay
men
t pen
altie
s re
cieva
ble:
Bala
nce
at 2
0-M
ar-2
017
22,2
351,
057
453
619,
891
2,79
3,72
251
97,
133
9,13
228
,485
794,
118
95,6
244,
371,
910
Incr
ease
dur
ing
the
Year
4,
380
30,7
1749
768,
039
13,5
59,5
1143
483
184
410
9,89
00
259,
830
29,4
8114
,764
,006
Colle
ction
dur
ing
the
year
(8
,074
) (3
1,27
7)0
(600
,769
) (1
2,63
5,30
6) (3
70)
(733
) (7
,971
) (6
7,43
8)(0
) (5
89,0
30)
(29,
428)
(13,
970,
396)
Bala
nce
at 2
0-M
ar-2
018
18,5
4149
750
278
7,16
13,
717,
927
115
107
651
,584
28,4
8546
4,91
895
,677
5,16
5,52
0
Profi
t and
late
pay
men
t pe
nalti
es o
n cr
edit
facil
ities
Bala
nce
at 2
0-M
ar-2
017
103,
018
82,8
122,
087
7,68
2,08
379
,024
,599
50,9
8670
,450
7,56
92,
307,
265
4,23
8,21
880
1,51
810
5,08
094
,475
,685
Bala
nce
at 2
0-M
ar-2
018
101,
311
9,30
22,
024
7,42
9,43
078
,794
,084
96,8
5615
7,63
94,
297
5,57
1,73
55,
018,
061
479,
472
96,7
5997
,760
,970
12-7
-1-
Mo
vem
ent
of p
rofi
t an
d la
te p
aym
ent
pen
altie
s o
n cr
edit
faci
litie
s an
d d
ues
fro
m n
on-
go
vern
men
tal e
ntiti
es:
BANK
PAS
ARGA
D (P
JSC)
NO
TES
to C
ONSO
LIDA
TED
FINA
NCIA
L ST
ATEM
ENTS
FIN
ANCI
AL Y
EAR
ENDE
D M
ARCH
20,
201
8
IRRm
www.bankpasargad.com 85
Managem
ent Report
Independent Auditor's R
eportFinancial S
tatements &
Notes
12-8- Credit facilities and dues from non-governmental entities by customer type:
12-9- Credit facilities and dues from subsidiaries and associates are as follows:
2017/18 2016/17
Gross amount provision of doubtful debts Net amount Gross amount provision of
doubtful debts Net amount
Individuals 18,550,717 (1,675,730) 16,874,987 38,370,713 (2,431,703) 35,939,010
legal entities 607,953,933 (42,467,479) 565,486,454 444,966,178 (25,197,594) 419,768,584
Employees 6,925,858 (103,888) 6,821,970 6,217,941 (93,269) 6,124,672
633,430,508 (44,247,097) 589,183,411 489,554,832 (27,722,566) 461,832,266
2017/18 2016/17
Current Overdue provision of doubtful debts Total Total
Subsidiaries:
Pasargad Arzesh Afarinan Group 2,362,118 0 35,432 2,326,686 2,873,558
Saman Tejarat Tadbir Iranian Co. 9,839,622 0 147,594 9,692,028 8,026,021
Hafez andisheh mad Co. 2,971,594 0 44,574 2,927,020 2,380,981
Miras Rastin Pars Co. 2,655,523 0 39,833 2,615,690 2,154,631
Payam Avaran Modiriat Iranian Co. 2,276,748 0 34,151 2,242,597 1,678,082
Kashefan No Andish Pars Co. 2,181,211 0 32,718 2,148,493 1,694,704
Khadamat Poshtiban Pasargad Aryan Co. 92,497 0 1,387 91,110 75,663
Modabberan Tejarat Iranian Co. 822,353 0 12,335 810,018 692,382
Pasargad Aryan ICT Group 1,870,546 0 28,058 1,842,488 760,566
"Pasargad Machinery and Equipment Leasing Co." 4,400,139 0 66,002 4,334,137 3,603,163
Pasargad Leasing Co. 829,745 0 12,446 817,299 955,462
Aryan Pasargad construction management Co. 5,449,917 0 81,749 5,368,168 4,323,359
Zist Boom ICT Pasargad Aryan Co. 8,542 0 128 8,414 9,044
Bank Pasargad Brokerage Co. 22,877 0 343 22,534 -
Fanap co. 1,781,356 0 26,720 1,754,636 1,178,240
Pardazesh Electronic Rashed Samaneh Co. 113,606 0 1,704 111,902 55,617
Zirsakht ICT Pasargad Aryan Co. 50,763 0 761 50,002 55,958
Nezam Mohandesi Aryan Construction Management Co. 775,081 0 11,626 763,455 646,178
Pasargad Mass construction Developing Co. 9,583,812 0 143,757 9,440,055 7,623,773
magnetic Karan Co. 36,733 0 551 36,182 -
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
IRRm
IRRm
86 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
2017/18 2016/17
Current Overdue provision of doubtful debts Total Total
Associates:
Pasargad Energy Development Co. 5,464,496 0 81,967 5,382,529 896,021
Pars Behin Qeshm Oil Refinery Co. 1,415,345 0 21,230 1,394,115 -
Shams Pasargad electricity Co. 3,155,349 0 47,330 3,108,019 2,501,987
Qeshm Movaled Co. 601,570 0 9,024 592,546 521,295
Tejarat pasargad Co. 1,034,859 0 15,523 1,019,336 808,876
Petro Kariz Omid Kish Co. 1,657,707 0 24,866 1,632,841 1,310,665
Petro Danial Kish 20,562 0 308 20,254 59,018
Datis Aryan qeshm Co. 229,968 0 3,450 226,518 321,537
Ostovan Kish Drilling Co. 651,920 0 9,779 642,141 505,081
Sivan Tadbir Trade Co. 365,749 0 5,486 360,263 248,985
Faraz Pendaran Aria moj Co. 286,773 115,259 24,580 377,452 323,931
Niroo Gostar Sirjan Co. 10,858 0 163 10,695 10,700
Pishgaman Amin Sarmaye Pasargad 86,731 0 1,301 85,430 66,104
Barid Fanavar Aryan co. 170,244 0 2,554 167,690 57,252
Bank Pasargad E-Payment Co. 561,475 0 8,422 553,053 718,535
Iranian Babak Copper Co. 10,430,863 0 156,463 10,274,400 5,967,353
Middle East Mines & Mineral Industries Development Holding Co. 4,132,043 0 61,981 4,070,062 5,915,868
Middle East Mines Renovation & Development Co. 2,251,684 0 33,775 2,217,909 1,255,310
Zarand Iranian Steel Co. 37,586,145 0 563,792 37,022,353 21,104,812
Sirjan Iranian Co. 26,294,393 0 394,416 25,899,977 13,169,710
Bootyay E Iranian Steel Co. 13,388,887 0 200,833 13,188,054 6,593,819
Ferosilis Gharb Pars Co. 557,511 0 8,363 549,148 433,829
MANA Iranian Industries Renovation & Development structural Co. 796,677 0 11,950 784,727 558,580
Karavaran Sanat Khavaremyaneh Co. 98,912 0 1,484 97,428 -
Naftanir Industrial Projects Management Co. 50,894,811 0 763,422 50,131,389 21,432,869
Tamin Maskan Co. 20,554,014 0 308,310 20,245,704 17,165,786
Gharb Iranian developing trade Co. 9,197,666 0 137,965 9,059,701 6,983,523
Nasim Tejarat Farda Co. 7,192,934 0 107,894 7,085,040 5,650,625
Andishe Tejarat Soroush Sahand Co. 5,965,518 0 89,483 5,876,035 4,543,354
Mabna Khavarmiyaneh Co. 5,615,796 0 84,237 5,531,559 4,167,814
No-Andish Toseee Matin co. 5,578,052 0 83,671 5,494,381 4,421,013
Zarin Pey sazan Pasargad Co. 5,194,163 0 77,912 5,116,251 4,240,532
Poshesh Tamin Atieh Building Co. 5,172,347 0 77,585 5,094,762 3,709,354
Hashtom Construction Co. 4,711,921 0 70,679 4,641,242 3,963,968
Dana Gostar Caspian Co. 4,498,816 0 67,482 4,431,334 2,753,302
Pars Pishgan Mihan Negar Trade Co. 4,359,946 0 65,399 4,294,547 2,648,014
Paydar Zarin Tabirgaran Pishroo Co. 4,337,167 0 65,057 4,272,110 2,635,506
Noandish Pasargad Co. 4,250,682 0 63,760 4,186,922 3,482,669
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
IRRm
www.bankpasargad.com 87
Managem
ent Report
Independent Auditor's R
eportFinancial S
tatements &
Notes
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
2017/18 2016/17
Current Overdue provision of doubtful debts Total Total
Associates:
Pouya Andish Sarzamin Mad Co. 4,143,023 0 62,145 4,080,878 3,154,246
Kala Madar Iranian Trade Co. 3,788,619 0 56,829 3,731,790 2,967,782
Bazarganan Ayande-Negar Kala tejarat Co. 3,520,214 0 52,803 3,467,411 2,802,719
No-Avaran Danesh pajooh khavarmiyaneh Co. 3,331,634 0 49,975 3,281,659 2,066,910
Andishenegar Pasargad Trade Development Co. 3,238,890 0 48,583 3,190,307 2,650,438
Tadbirgaran Rastin Caspian Shomal Co. 3,137,883 0 47,068 3,090,815 2,582,004
Tadbirgaran Pasargad Co. 3,114,581 0 46,719 3,067,862 2,528,021
Padideh Taban Trade co. 3,065,050 0 45,976 3,019,074 2,307,615
Aryan Arman Pajoh Co. 3,004,910 0 45,074 2,959,836 2,515,404
Armaghan Trade Co. 2,724,101 0 40,862 2,683,239 2,245,541
Padide Taban Saramad Co. 2,705,418 0 40,581 2,664,837 1,772,890
Armannegar Khavarmiyaneh Co. 2,637,288 0 39,559 2,597,729 2,207,669
Zarintab Trade Co. 2,551,138 0 38,267 2,512,871 2,093,297
Iman Maskan Paydar Co. 2,490,629 0 37,359 2,453,270 2,050,283
Ayande Negar Pasargad Co. 2,485,314 0 37,280 2,448,034 2,031,558
Noavaran Khavarmyaneh Co 2,377,834 0 35,668 2,342,166 1,922,593
Tamin Atieh Co. 1,713,977 0 25,710 1,688,267 1,257,090
Nazm Avaran Pooyaye Iranian Co. 1,697,140 0 25,457 1,671,683 950,164
Pars Aryan Investment Co. 1,660,819 0 24,912 1,635,907 1,128,567
Tadbir Sazan Saramad Co. 1,179,284 0 17,689 1,161,595 963,550
Rahbord Sarmaye Iranian Co. 338,374 0 5,076 333,298 257,619
Darik Iranian Development Co. 331,235 0 4,969 326,266 306,639
Tamin Atieh Trade Development Co. 307,581 0 4,614 302,967 -
Petro Kala Pasargad Co. 281,004 0 4,215 276,789 214,040
Vandad Mehr Afarinan tosee va tejarat Co. 126,122 0 1,892 124,230 -
Pishro Kalaye Gharb Co. 124,971 0 1,875 123,096 108,977
Arzesh Pardaz Aryan consulting Co. 71,045 0 1,066 69,979 82,841
Binesh Gostar Trade Development Co. 35,846 0 538 35,308 3,952
Kherad Pishgan Aryayee Co. 28,957 0 434 28,523 -
Navid Gostaresh Tejarat No Avaran 16,076 0 241 15,835 5,479
Kherad Pishgan Pars Gostar Novin 8,810 0 132 8,678 6,718
353,137,104 115,259 5,317,333 347,935,030 233,119,585
IRRm
88 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
13-
INV
ES
TM
EN
T IN
SH
AR
ES
AN
D O
TH
ER
SE
CU
RIT
IESBA
NK P
ASAR
GAD
(PJS
C)
NOTE
S to
CON
SOLI
DATE
D FI
NANC
IAL
STAT
EMEN
TS F
INAN
CIAL
YEA
R EN
DED
MAR
CH 2
0, 2
018
Gro
upBa
nk P
asar
gad
20-M
ar-2
018
20-M
ar-2
017
20-M
ar-2
018
20-M
ar-2
017
Not
eCu
rren
tLo
ng te
rmTo
tal
Curr
ent
Long
term
Tota
lCu
rren
tLo
ng te
rmTo
tal
Curr
ent
Long
term
Tota
l
Inve
stm
ent i
n m
arke
tabl
e sh
ares
13-1
1,46
0,84
54,
198,
727
5,65
9,57
296
2,66
14,
186,
327
5,14
8,98
835
7,99
54,
198,
727
4,55
6,72
217
1,87
64,
192,
859
4,36
4,73
5
Inve
stm
ent i
n Pa
sarg
ad
grou
p 13
-20
19,9
56,4
1719
,956
,417
019
,322
,871
19,3
22,8
710
11,0
80,4
3411
,080
,434
010
,999
,184
10,9
99,1
84
Inve
stm
ent i
n ot
her
corp
orat
es a
nd in
stitu
tions
13-3
06,
227,
351
6,22
7,35
10
5,76
2,27
15,
762,
271
098
9,54
798
9,54
70
1,17
3,64
51,
173,
645
Inve
stm
ent i
n ot
her
secu
rities
13-4
019
,559
19,5
5920
9,98
520
9,98
519
559
1955
920
9,98
520
9,98
5
1,46
0,84
530
,402
,055
31,8
62,9
0096
2,66
129
,481
,453
30,4
44,1
1435
7,99
516
,288
,267
16,6
46,2
6217
1,87
616
,575
,673
16,7
47,5
49IRRm
www.bankpasargad.com 89
Managem
ent Report
Independent Auditor's R
eportFinancial S
tatements &
Notes
13-1- Investment in marketable shares
13-1-1- Current Investment in marketable shares is as follows:
20-Mar-2018 20-Mar-2017
Origination Number of shares
Investment percentage(%) Cost Net realisable
value Cost Net realisable value
Shares of listed companies in Tehran Stock Exchange:
Clinical, Optical and Measurement
Kontor Sazi Iran Co. Purchased 3,262,418 1.63 69,009 151,921 - -
Extraction of metal ores
Sabanour Mining and Industrial Development Company Purchased 882,716 0.03 2,610 2,259 - -
Iran Zinc Mines Development Purchased 6,827,884 0.28 19,714 24,376 - -
Bafgh Mining Purchased 238,000 0.12 3,773 3,550 - -
Mines and metal developing investment Purchased 0 0.00 - - 3,938 3,948
bama Purchased 420,067 0.08 3,164 3,949 - -
Chadormalu Mining and Industrial Company Purchased 3,276,709 0.01 4,947 6,793 - -
Gol Gohar Mining and Industrial Company Purchased 9,392,796 0.03 24,304 34,284 - -
Banks and credit institutions:
Ansar Bank Purchased 14,311,852 0.72 14,312 30,627 - -
Ansar Bank right issue Purchased 0 0.00 - - 16,329 12,574
Day Bank Purchased 1,000,000 0.02 1,429 1,404 1,429 1,404
Transportation, Communications and Warehousing:
Rail Pardaz Seir co. Purchased 0 0.00 - - 20,068 23,215
Automotive and manufacturing parts
SAIPA Purchased 6,650,000 0.02 8,843 5,679 - -
ZAMYAD Purchased 200,000 0.00 187 160 - -
BAHMAN DISEL Purchased 50,000 0.01 213 201 - -
RENA Investment Purchased 1,434,481 0.02 1,603 1,183 - -
Other non-metal ores:
Lia special materials co Purchased 0 0.00 - - 1,422 5,032
Investments:
Kharazmy Investment co. Purchased 0 0.00 - - 13,635 10,452
Industrial conglomerate companies:
Country Pension Fund Investment co. Purchased 0 0.00 - - 3,414 3,188
Trading Invoice Fund - -
Etemad Afarin Parsian investment Fund Purchased 875,000 0.09 14,193 17,007 - -
Electricity, gas, steam and hot water supply:
Fajr Petrochemical Co. Purchased 0 0.00 - - 56,901 56,305
Mobin Petrochemical Co. Purchased 0 0.00 - - 23,742 23,484
Petroleum products, coke and nuclear fuel
Isfahan Oil Refinery Purchased 300,000 0.00 873 1,284 - -
Bandar Abbas Oil Refinery Purchased 1,868,841 0.01 9,651 13,385 - -
Tehran Oil Refinery Purchased 549,100 0.00 1,357 2,251 - -
Shiraz Oil Refinery Purchased 79,340 0.01 1,401 985 - -
Base metals:
Asia Zarin madan co. Purchased 740,163 0.25 4,108 4,020 - -
IMPRC Purchased 397,142 0.33 4,682 5,745 - -
Sadid Pipe & Equipment Co. Purchased 64,853 0.07 461 519 461 160
Calcimine Co. Purchased 5,081,416 0.25 19,969 31,266 - -
Aluminum rolling company Purchased 750,000 0.11 1,046 1,131 - -
Zangan Zinc Industry co Purchased 175,667 0.18 1,281 1,770 - -
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
IRRm
90 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
20-Mar-2018 20-Mar-2017
Origination Number of shares
Investment percentage(%) Cost Net realisable
value Cost Net realisable value
kimiya zanjan gostaran co. Purchased 1,017,788 0.88 13,886 13,222 - -
National Iranian Lead Purchased 1,318,000 0.41 3,736 4,247 - -
Arfa Iron and steel co Purchased 2,763,970 0.09 9,570 9,771 - -
Arfa Iron & Steel Co. right issue Purchased 927,642 0.03 928 1,814 - -
Khouzestan Steel Co. Purchased 5,901,897 0.04 22,250 28,524 - -
Mobarakeh Steel Co. Purchased 13,883,907 0.02 23,604 39,944 - -
Iran Alloy Steel Company Purchased 1,141,343 0.03 2,129 1,600 - -
Chemical products:
Tamin Petroleum & Petrochemical Investment Co. Purchased 669,000 0.00 866 1,046 - -
Zagros Petrochemical Co. Purchased 1,258,721 0.05 25,415 44,272 413 442
Fan Avaran Petrochemical Co. Purchased 370,000 0.04 6,816 10,952 - -
Khark Petrochemical Co. Purchased 631,609 0.03 8,738 15,450 - -
Khorasan Petrochemical Co. Purchased 99,887 0.01 556 724 - -
Maron Petrochemical Co. Purchased 517,794 0.01 18,399 21,776 - -
Pardis Petrochemical Co. Purchased 1,032,069 0.02 6,830 8,453 - -
Shiraz Petrochemical Co. Purchased 200,000 0.00 439 509 - -
Kermanshah Petrochemical Co. Purchased 264,366 0.01 705 992 - -
Persian Gulf Petrochemical Industries Co. Purchased 0 0.00 - - 29,358 15,223
Pharmaceutical products:
Purchased 0 0.00 - - 688 558
Alborz Distribution Co right issue Purchased 0 0.00 - - 77 131
Total current Investments 357,995 549,047 171,876 156,116
Long-term Investment in marketable shares
Auxiliary activities to intermediary financial institutions:
Energy Exchange financial institutions Purchased 6,522,000 1.82 6,522 49,300 6,522 51,393
Farabourse Iran Co. Purchased 70,000 0.02 10 227 10 269
Technical and engineering services
MAPNA Purchased 556,009,429 5.55 4,192,195 3,778,640 4,186,327 4,220,895
Total Long term Investment 4,198,727 3,828,167 4,192,859 4,272,558
Total investment in marketable shares 4,556,722 4,377,214 4,364,735 4,428,674
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
IRRm
www.bankpasargad.com 91
Managem
ent Report
Independent Auditor's R
eportFinancial S
tatements &
Notes
Gro
upBa
nk
20-M
ar-2
018
20-M
ar-2
017
20-M
ar-2
018
20-M
ar-2
017
orig
inati
onN
umbe
r of
shar
esIn
vest
men
t pe
rcen
tage
Cost
Accu
mul
ated
im
pairm
ent
Net
Boo
k va
lue
Mar
ket v
alue
Cost
Mar
ket v
alue
00
esta
blish
ed
7,44
7,63
9,00
098
7,44
7,63
97,
447,
639
07,
447,
639
7,44
7,63
97,
447,
639
00
esta
blish
ed
180,
000,
000
9019
8,28
819
8,28
80
198,
288
198,
288
198,
288
00
esta
blish
ed
335,
000,
000
6751
2,55
051
2,55
00
512,
500
448,
900
448,
900
00
esta
blish
ed
300,
000,
000
3030
0,00
030
0,00
00
300,
000
300,
000
300,
000
00
esta
blish
ed
88,2
00,0
0049
88,2
0088
,200
088
,200
71,0
5071
,050
00
esta
blish
ed
1,22
5,00
0,00
049
1,21
6,18
01,
216,
180
01,
216,
180
1,21
6,18
01,
216,
180
00
esta
blish
ed
510,
300,
000
2043
2,98
643
2,98
60
1,24
7,68
343
2,98
61,
266,
054
00
esta
blish
ed
18,0
00,0
0018
54,1
1554
,115
054
,115
54,1
1554
,115
00
esta
blish
ed
34,0
00,0
0034
680,
000
680,
000
068
0,00
068
0,00
068
0,00
0
esta
blish
ed
00
00
00
00
56,9
5019
,150
esta
blish
ed
1,50
0,00
015
19,1
5019
,150
019
,150
19,1
5019
,150
323,
619
482,
751
esta
blish
ed
133,
080,
479
5.3
131,
326
131,
326
013
9,29
913
0,87
621
1,73
4
7,93
4,93
87,
927,
963
esta
blish
ed
00
00
00
00
4,31
5,82
44,
315,
825
esta
blish
ed
00
00
00
00
4,31
1,16
44,
087,
833
esta
blish
ed
00
00
00
00
396,
668
396,
678
esta
blish
ed
00
00
00
00
220,
933
220,
480
esta
blish
ed
00
00
00
00
120,
000
120,
000
esta
blish
ed
00
00
00
00
330,
000
80,0
00es
tabl
ished
0
00
00
00
0
1,94
6,32
11,
672,
191
purc
hase
d0
00
00
00
0
19,9
56,4
1719
,322
,871
11,0
80,4
3411
,080
,434
011
,903
,054
10,9
99,1
8411
,913
,110
Activ
ity
Pasa
rgad
Arz
esh
Afar
inan
Co.
Econ
omica
l, tec
hnica
l, fina
ncia
l and
cred
it se
rvice
s
Pasa
rgad
Fore
ign
Exch
ange
Co.
Fore
ign
curr
ency
exc
hang
e
Pasa
rgad
Lea
sing
Co.
cons
truc
tion
leas
ing
Pasa
rgad
E-P
aym
ent C
o.El
ectro
nic b
anki
ng se
rvice
s
Bank
Pas
arga
d Br
oker
age
Co.
Stoc
k mar
ket b
roke
rage
Pasa
rgad
Ary
an IC
T Co
.IT
and
com
mun
icatio
ns
Pasa
rgad
Insu
ranc
e Co
.In
sura
nce
serv
ices
"Pas
arga
d M
achi
nery
and
Equ
ipm
ent L
easin
g Co
."M
achi
nery
Leas
ing
Nas
im S
alam
at P
asar
gad
Co.
Heal
th se
rvice
s
Oth
er g
roup
Com
pani
es
Rahy
aftha
ye N
oava
r Bar
tar P
asar
gad
inst
. Ed
ucati
onal
serv
ices
Irani
an R
eins
uran
ce C
o.In
sura
nce
serv
ices
Mid
dle
East
Min
es &
Min
eral
Indu
strie
s De
velo
pmen
t Hol
ding
Co.
Inve
stm
ent i
n sh
ares
Mab
naye
Kha
vare
mya
neh
co.
Inve
stm
ent a
nd m
ine
extra
ction
Pars
Ary
an In
vest
men
t Co.
inve
stm
ent s
ervic
es
Pad
id-e
-Tab
an sa
ram
ad c
onst
ructi
on C
o.in
vest
men
t ser
vices
FAN
AP C
O.
ICT
serv
ices
Sira
f Refi
nerie
s Inf
rast
uctu
re C
ompl
exRe
finer
y ser
vices
Chak
ad T
avan
gary
co.
Insu
ranc
e se
rvice
s
Oth
er C
ompa
nies
13-2
- In
vest
men
t in
pas
arg
ad g
roup
sha
res
is a
s fo
llow
s:BANK
PAS
ARGA
D (P
JSC)
NO
TES
to C
ONSO
LIDA
TED
FINA
NCIA
L ST
ATEM
ENTS
FIN
ANCI
AL Y
EAR
ENDE
D M
ARCH
20,
201
8
IRRm
92 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
13-2-1 Subsidiaries characteristics subject to consolidation are as follows:
13-2-1-1- Pasargad Arzesh Afarinan's subsidiaries to be consolidated includes: Pasargad Machinery and
Equipment leasing co.- Hafez Andishe mad co.- miras rastin pars co. - Pasargad Energy Development Com-
pany group.- Pasargad Financial and investment services co.- Payam avaran modiriat Iranian co. - Kashefan
No andish pars co.- Saman tejarat tadbir Iranian co.- Modaberan Tejarat Iranian- Nazm Avaran Shayesteh -
Pasargad Aryan bachoffice services co. - Novin Hamrah communication development co.
13-2-1-2- Pasargad Leasing's subsidiarie to be consolidated includes: Arian pasargad construction manage-
ment co.
13-2-1-3- Pasargad Aryan ICT's subsidiaries to be consolidated: Dotis Aryan qeshm software co.- Ary-
an Arvand Co.- Pasargad aryan communication development co.- Rashed samaneh electronic processing
co.- Adonis electronic development-Pasargad Aryan ICT investment co.- Barid Co. - Novin Hamrah Aryan
communication development co.- Behkavan Fanavar Hooshmand Gavidan Co.- FANAP Zirsakht- Behkavan
Noavar Arena- Magnetic Karan Co.- Arman Kish ICT co.- Dadehpardazan Tadbir sarmaye co.- Datam Kish
co.- Pasargad Fartak Aryan co- Epsan ICT services co.- Emdam mandegar ICT co.- Tadbirgaran Fanavari
Hooshmand Aryan- noavar Pasargad technologies co.
13-2-1-4- Pasargad Nasim Salamat co's subsidiaries to be consolidated includes:Lyman consulting Engi-
neers co.- Khatam nasim salamat co.- Pasargad farmod parsi co.-Atieh Tourism Development Company in the
Middle East-Nasim Salamat Electronic Co. & Nasim Salamat Qazvin Co.
13-2-1-5- despite the ownership percentage in Pasargad insurance is under 50' but because of Bank Pasar-
gad major control , it is calculated in consolidated process.
Ownership percentage
Note Domicile Group Bank Activity
subsidiaries
Pasargad Arzesh Afarinan Co. 13-2-1-1 IRAN 98 98 Economical, technical, financial and credit services
Pasargad Foreign Exchange Co. IRAN 92.45 90 Foreign currency exchange
Pasargad Leasing Co. 13-2-1-2 IRAN 68.47 67 Building leasing
Pasargad E-Payment Co. IRAN 66.26 30 Electronic banking services
Pasargad Aryan ICT Co. 13-2-1-3 IRAN 63.41 49 IT and communications
Bank Pasargad Brokerage Co. IRAN 62.72 49 Stock market brokerage
Nasim Salamat Pasargad Co. 13-2-1-4 IRAN 38.98 34 Health services
Pasargad Insurance Co. 13-2-1-5 IRAN 24.89 20 Insurance services
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
www.bankpasargad.com 93
Managem
ent Report
Independent Auditor's R
eportFinancial S
tatements &
Notes
Gro
upBa
nk
20-M
ar-2
018
20-M
ar-2
017
20-M
ar-2
018
20-M
ar-2
017
orig
inati
onN
umbe
r of s
hare
sIn
vest
men
t pe
rcen
tage
(%)
Cost
Accu
mul
ated
im
pairm
ent
Net
boo
k va
lue
Mar
ket v
alue
Net
boo
k va
lue
Mar
ket v
alue
3,10
33,
103
purc
hase
d 93
0,90
66.
20%
3,10
30
3,10
33,
103
3,10
33,
103
13,3
1413
,314
purc
hase
d 35
,300
,500
2.08
%13
,314
013
,314
13,3
1413
,314
13,3
14
237,
533
323,
800
purc
hase
d 23
2,88
81.
48%
234,
131
023
4,13
123
4,13
123
4,13
123
4,13
1
699,
999
699,
999
purc
hase
d 65
0,25
65.
69%
699,
999
069
9,99
969
9,99
969
9,99
969
9,99
9
050
,100
purc
hase
d -
50.0
0%0
00
050
,100
50,1
00
39,6
0016
7,71
7pu
rcha
sed
39,0
000.
60%
39,0
000
39,0
0039
,000
39,0
0039
,000
010
,000
purc
hase
d -
5.00
%0
00
010
,000
10,0
00
050
0pu
rcha
sed
500
10.0
0%0
00
050
050
0
016
,000
purc
hase
d 1,
600,
000
80.0
0%0
00
016
,000
16,0
00
07,
500
purc
hase
d 75
075
.00%
00
00
7,50
07,
500
050
,000
purc
hase
d 9,
000
90.0
0%0
00
050
,000
50,0
00
94,9
9869
,997
purc
hase
d 49
,617
20.0
0%0
00
049
,998
49,9
98
2,42
4,35
11,
585,
391
purc
hase
d 0
00
00
0
2,71
4,45
32,
764,
850
purc
hase
d 0
00
00
0
6,22
7,35
15,
762,
271
989,
547
098
9,54
798
9,54
71,
173,
645
1,17
3,64
5
Iran
Cred
it Sc
orin
g Co
.
Shap
arak
E-p
aym
ent C
o.
Andi
she
fard
a Fu
nd
Capi
tal m
arke
t dev
elop
men
t inv
estm
ent F
und
Fund
of w
rest
ling
Iran
Nati
onal
Spo
rt
Andi
she
Zarin
Pas
arga
d F
und
Nik
andi
shan
Hon
ar In
vest
men
t Fun
d Co
.
Alza
hra
Inve
stm
ent F
und
Amin
Atie
Nik
oo In
vest
men
t Fun
d
Moj
ab To
oba
Inve
stm
ent F
und
Ehda
ye o
zve
Inve
stm
ent F
und
Mira
se m
ande
gar p
asar
gad
Inve
stm
ent F
und
Depo
sit, p
artic
ipati
on b
ond
Oth
er
BANK
PAS
ARGA
D (P
JSC)
NO
TES
to C
ONSO
LIDA
TED
FINA
NCIA
L ST
ATEM
ENTS
FIN
ANCI
AL Y
EAR
ENDE
D M
ARCH
20,
201
8
13-3
- Lo
ng-t
erm
inve
stm
ent
in o
ther
co
mp
anie
s an
d in
stitu
tion
IRRm
94 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
13-4- Investment in other securities
Issuer Type Rate (%) origination 20-Mar-2018 20-Mar-2017
State-owned companies
Ritel 20 percent Sukuk 20 purchased 0 91,696
Telecommunication Company of Iran sukuk 21 purchased 0 5,484
Mapna sukuk 20 purchased 0 5,994
Mahan Airline sukuk 21 purchased 19,559 38,392
Tabriz metro participation bonds 22 purchased 0 127
Mashhad municipity participation bonds 21 purchased 0 84
Islamic Treasury securities Islamic Treasyry securities purchased 0 5,385
Governmental and construction projects participation bonds participation bonds 18 purchased 14,329
Kordestan Cement participation bonds purchased 0 340
Ritel 2 22 percent sukuk 22 purchased 0 2,387
Asia petro omid sukuk 20 purchased 0 3,281
oil industry employee's fund shares participation bonds 21 purchased 0 8,641
Shiraz municipity participation bonds 21 purchased 0 19,567
Sabzevar municipity participation bonds 21 purchased 0 3,433
Tehran municipity participation bonds 21 purchased 0 486
Ritel sukuk 21 purchased 0 6,795
Rayan Saipa leasing co. participation bonds 22 purchased 0 3,564
19,559 209,985
14- ACCOUNTS AND NOTES RECEIVABLE
14-1- The above mentioned amount mainly relates to Gostaresh Energy Group Companies'
receivables from the Power Plants of Khoi, Shariati, Oromieh and other Petroleum Companies.
Group
Note 20-Mar-2018 20-Mar-2017
Receivables from associates 1,168,866 1,830,077
Receivables from others 14-1 24,252,414 13,041,223
Note receivables 427,252 456,041
Reinsurers' share of technical reserves 7,418,010 4,920,452
Receivables from the insured and agencies 2,792,532 1,598,828
Receivables from insurers and reinsurers 43,203 26,577
36,102,277 21,873,197
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
IRRm
IRRm
www.bankpasargad.com 95
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ent Report
Independent Auditor's R
eportFinancial S
tatements &
Notes
15-1-Due from subsidiaries and associates based on the subject of the transaction:
20-Mar-2018
diposal of Investment and assets
Purchase of assets and
investments
Purchase of
services
on account
receivable
on account payable
Joint Qard-
al-hasan
Dividends receivable
Dividends payable Total
Subsidiaries:
Pasargad Aryan ICT Group 205,531 4,360 0 0 44,229 0 357,700 0 611,820
Bank Pasargad E-Payment Co. 0 0 0 0 0 0 499 0 499
Bank Pasargad Brokerage Co. 0 0 25,731 0 0 0 19,600 0 45,331
Pasargad Arzesh Afarinan Group 184,099 0 0 0 36,035 0 244,988 0 465,122
Pasargad Foreign Exchange Co. 0 3,186 0 0 0 0 72,000 0 75,186
Pasargad Insurance Co. 8,695 0 0 0 0 0 66,339 0 75,034
Pasargad Leasing Co. 0 0 0 0 6,250 0 50,250 0 56,500
Nasim Salamat Pasargad co. 0 0 0 0 500,000 0 2,618 0 502,618
398,325 7,546 25,731 0 586,514 0 813,994 0 1,832,111
Associates:
Mabnaye Khavarmyaneh Co. 0 0 0 0 82 0 0 0 82
Middle East Mines & Mineral Industries Development Holding Co 0 0 0 0 1,256 0 0 0 1,256
Pasargad Management & Human Capital Research and Development Institute 0 0 0 0 13,204 0 0 0 13,204
Pishgaman Amin sarmaye Pasargad 0 0 0 0 107,950 0 0 0 107,950
Tamin maskan pasargad group co. 0 0 0 0 72,303 0 0 0 72,303
Chakad Tavangary Co. 0 0 0 0 12,500 0 0 0 12,500
Atye khaveremyane developing co. 0 0 35,895 0 2,000 0 0 0 37,895
Tosee Tejarat Andishe negar Pasargad 0 0 0 0 6,769 0 0 0 6,769
0 0 35,895 0 216,064 0 0 0 251,958
398,325 7,546 61,626 0 802,578 0 813,994 0 2,084,069
Net transaction profit 0
15- DUES FROM SUBSIDIARIES AND ASSOCIATES
Group Bank
20-Mar-2018 20-Mar-2017 20-Mar-2018 20-Mar-2017
Net Net Balance Provision for doubtful debts Net Net
dues from subsidiaries 0 0 1,832,111 0 1,832,111 847,084
dues from associates 1,286,751 1,465,223 251,959 0 251,959 137,322
1,286,751 1,465,223 2,084,070 0 2,084,070 984,406
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
IRRm
IRRm
96 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
15-2- dues from subsidiaries and associates based on the subject of the transaction:
(comparing period)
20-Mar-2017
diposal of Investment and assets
Purchase of assets and
investments
Purchase of
services
on account
receivable
on account payable
Joint Qard-
al-hasan
Dividends receivable
Dividends payable Total
Subsidiaries:
MIDHCO Group 0 0 0 0 667 0 6,586 0 7,253
Mabnaye KhavarMiyaneh Co. 0 0 0 0 270 0 0 0 270
Pasargad Aryan ICT Group 0 0 245,976 0 0 0 233,730 0 479,706
Bank Pasargad E-Payment Co. 0 0 19,227 0 0 0 1,575 0 20,802
Bank Pasargad Brokerage Co. 42,772 0 0 0 0 0 19,600 0 62,372
Pasargad Arzesh Afarinan Group 15,550 0 0 0 0 0 2 0 15,552
Pasargad Foreign Exchange Co. 0 0 0 0 5,588 0 54,000 0 59,588
Pasargad Insurance Co. 35,287 0 0 0 0 0 71,442 0 106,729
Pasargad Leasing Co. 0 0 0 0 6,250 0 87,100 0 93,350
Nasim Salamat Pasargad co. 0 0 0 0 0 0 1,462 0 1,462
93,609 0 265,203 0 12,775 0 475,497 0 847,084
Associates:
Iranian Reinsurance Co. 0 0 0 0 0 0 19,900 0 19,900
Pasargad Management & Human Capital Research and Development Institute 0 0 0 0 13,204 0 0 0 13,204
Pishgaman Amin sarmaye pasargad 0 0 0 0 57,950 0 0 0 57,950
Chakad Tavangary Co. 0 0 0 0 12,500 0 0 0 12,500
Tosee Gardeshgary Atye Khavarmyaneh co. 0 0 0 0 27,000 0 0 0 27,000
Tejarat andishe negar Pasargad 0 0 0 0 6,769 0 0 0 6,769
0 0 0 0 117,423 0 19,900 0 137,323
93,609 0 265,203 0 130,198 0 495,397 0 984,406
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
IRRm
www.bankpasargad.com 97
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ent Report
Independent Auditor's R
eportFinancial S
tatements &
Notes
15-3- Classification of receivables from subsidiaries and associates according to
instruction of Money and Credit Council of CBI
20-Mar-2018
Current debts Overdue debts Bad debts Doubtful debts Total
Receivables from subsidiaries 1,247,307 389,869 194,935 0 1,832,111
Receivables from associates 251,958 0 0 0 251,958
Net receivables from subsidiaries and associates before provision of doubtful debts 1,499,265 389,869 194,935 0 2,084,069
General provision of doubtful debts (0) 0 0 0 0
Special provision of doubtful debts 0 (0) (0) (0) 0
Balance at 20-Mar-2018 1,499,265 389,869 194,935 0 2,084,069
Balance at 20-Mar-2017 357,252 395,401 231,753 0 984,406
16- OTHER ACCOUNTS RECEIVABLE
Group Bank
Note 20-Mar-2018 20-Mar-2017 20-Mar-2018 20-Mar-2017
Balance receivable
provision of doubtful
debtsNet Net Balance
receivable
provision of
doubtful debts
Net Net
Participation bonds' realized profit 0 0 0 1,600 0 0 0 1,600
Temporary accounts receivable 16-1 1,750,872 0 1,750,872 773,279 1,750,872 0 1,750,872 773,279
Dividends receivable 16-2 354,977 0 354,977 462,560 322,450 0 322,450 432,623
Other notes receivable 847,098 0 847,098 458,468 648,976 0 648,976 425,469
Other 16-3 9,397,388 0 9,397,388 6,630,774 607,593 0 607,593 472,977
12,350,335 0 12,350,335 8,326,681 3,329,891 0 3,329,891 2,105,948
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
IRRm
IRRm
98 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
16-1- Bank's temporary accounts receivable
16-2- dividends receivable
20-Mar-2018 20-Mar-2017
Items related to credit facilities:
litigation and bad debts recovery cost 214,334 283,086
214,334 283,086
Items non-related to credit facilities:
Temporary Accounts Receivable - foreign currency 1,007,945 125,719
Internal debtors - other 215,326 224,724
Internal debtors - petty cash 0 252
Internal debtors - individuals 313,267 139,498
1,750,872 773,279
20-Mar-2018 20-Mar-2017
Listed companies:Mines and Metal Development Investment Co. 75,298 272,398MAPNA Group 227,646 138,810Shiraz Petrochemical Co. 9,499 9,500Gol Gohar Mining and Industrial Co. 207 3,289rena investment Co. 43 0Persian Gulf Petrochemical Industries Co. 1,814 1,814Kharazmi Investment Co. 1,690 1,690Ghadir Investment Company 0 1,524Esfahan Petrochemical Company 1,199 1,199Iran Combine Manufacturing Co. 969 969Chemidarou Co. 366 366Pention Fund Investment Co. 506 365Pars Khodro Co. 142 142Bank Day 0 120Pardis Petrochemical Co 240 0Rail Pardaz Seir Co. 324 324Fars & Khuzestan Cement Co. 69 69Khozestan Steel Co 22 22Lia Special Materials INC. 20 20Exir Pharmaceutical Co. 2 2asan pardakht Co. 500 0Iran Alloy Steel Co. 77 0 Mobarakeh Steel Co. 468 0Bandar Abbas Oil Refining Co. 1,215 0SAIPA Corp 53 0Niroo Mohareke Co. 6 0Esfahan Oil Refining Co. 75 0
322,450 432,623
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
IRRm
IRRm
www.bankpasargad.com 99
Managem
ent Report
Independent Auditor's R
eportFinancial S
tatements &
Notes
20-Mar-2018
Current debts Overdue debts Bad debts Doubtful debts Total
Dividends receivable 274,083 45,762 2,605 0 322,450
Participation bonds realized profit 0 0 0 0 0
dues from employee 0 0 0 0 0
Temporary accounts receivable 962,980 560,279 227,613 0 1,750,872
Other notes receivable 648,976 0 0 0 648,976
Other 607,593 0 0 607,593
"Net other accounts receivable before doubtful debts provisions " 2,493,632 606,041 230,218 0 3,329,891
General provision of doubtful debts 0 0 0 0 0
specific provision of doubtful debts 0 0 0 0 0
Balance at 20-Mar-2018 2,493,632 606,041 230,218 0 3,329,891
Balance at 20-Mar-2017 1,349,094 199,351 259,424 298,079 2,105,948
16-3- Classification of OTHER ACCOUNTS RECEIVABLE
"17-1- The above mentioned amount mainly relates to prepayments made by Pasargad Energy Development
Co. to oil projects' contractors.
18-1- inventories have sufficient insurance coverage against possible dangers
17- PREPAYMENTS AND ORDERS
18-INVENTORIES
Group
Note 20-Mar-2018 20-Mar-2017
Orders from foreign countries 14,189 31,308
Prepayment for purchase of goods and services 928,695 1,012,258
Prepaid expenses 49,562 74,088
Other 17-1 115,427 121,345
1,107,873 1,238,999
Group
Note 20-Mar-2018 20-Mar-2017
Properties and building projects 3,301,719 3,637,440
Goods and components 18-1 1,688,512 1,003,802
Cards 13,292 15,314
Our goods on consignment 116,329 55,263
Other 183,930 1,026,077
5,303,782 5,737,896
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
IRRm
IRRm
IRRm
100 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
19-
FIX
ED
AS
SE
TS
19-1
- G
roup
's fi
xed
ass
ets
Land
Build
ing
Inst
alla
tions
Com
pute
r eq
uipm
ents
Vehi
cles
Offi
ce fu
rnitu
re
and
fixtu
res
Leas
ehol
d im
prov
emen
tsTo
ols
Mac
hine
ry
and
equi
pmen
ts
Asse
ts u
nder
co
nstr
uctio
n Lo
ng-t
erm
pr
epay
men
tsTo
tal
Cost
of g
oods
:
Bala
nce
at 2
0-M
ar-2
016
7,8
10,1
50
6,9
87,4
97
24,
078,
222
1,4
10,1
21
309
,571
9
36,5
11
78,
530
132
,113
2
6,45
4,80
0 1
8,26
2,06
4 3
7,37
4,96
6 1
23,8
34,5
45
Addi
tions
164
,631
3
04,2
75
235
,047
1
,034
,813
2
4,16
0 1
38,5
89
4,3
11
12,
303
6,6
67,4
33
14,
581,
567
18,
142,
122
41,
309,
251
Disp
osal
s (3
,349
) (1
6,55
0)0
(60,
612)
(462
) (8
,537
)0
(122
) (1
9,69
6)0
(298
,301
) (4
07,6
29)
Tran
sfer
s and
adj
ustm
ents
(110
,688
) (1
,267
,594
) (1
7,87
6,08
9) 1
,590
,448
(1
67,1
66)
(130
,677
) (3
90)
(67,
739)
(24,
650,
524)
(13,
919,
130)
(37,
623,
159)
(94,
222,
708)
Bala
nce
at 2
0-M
ar-2
017
7,8
60,7
44
6,0
07,6
28
6,4
37,1
80
3,9
74,7
70
166
,103
9
35,8
86
82,
451
76,
555
8,4
52,0
13
18,
924,
501
17,
595,
628
70,
513,
459
Addi
tions
2
,112
,591
1
,149
,045
1
,083
,715
9
27,9
71
55,
099
204
,693
8
62
3,1
54
420
,875
9
,889
,952
2
3,74
7,55
0 3
9,59
5,50
7
Disp
osal
s (8
,141
) (1
,359
)0
(208
,921
) (2
,290
) (7
6,05
6)0
0 (1
,408
) (7
6,02
7) (6
,575
) (3
80,7
77)
Tran
sfer
s and
adj
ustm
ents
41,
868
230
,062
4
1,05
5,09
1 2
57,8
03
31,
417
177
,364
0
(536
) 9
49,2
79
(23,
154,
407)
(18,
751,
444)
836
,497
Bala
nce
at 2
0-M
ar-2
018
10,
007,
062
7,3
85,3
76
48,
575,
986
4,9
51,6
23
250
,329
1
,241
,887
8
3,31
3 7
9,17
3 9
,820
,759
5
,584
,019
2
2,58
5,15
9 1
10,5
64,6
86
Accu
mul
ated
dep
reci
ation
and
ac
cum
ulat
ed im
pairm
ent:
Bala
nce
at 2
0-M
ar-2
016
0 1
,034
,117
4
,755
,132
8
66,0
58
117
,202
3
29,7
97
75,
051
49,
934
642
,621
0
0 7
,869
,912
Depr
ecia
tion
and
impa
irmen
t0
300
,549
7
12,4
78
648
,346
2
7,29
5 1
24,4
67
2,7
08
17,
008
4,4
36,7
21
00
6,2
69,5
72
Disp
osal
s0
1,1
60
0 5
6,31
4 1
29
7,0
73
0 1
12
143
0
0 (6
4,93
1)
Tran
sfer
s and
adj
ustm
ents
0 (1
43,7
31)
(2,1
31,9
58)
211
,073
(7
0,38
5) (2
3,15
0) (1
,412
) (2
6,40
5) (2
,642
,541
)0
0 (4
,541
,047
)
Bala
nce
at 2
0-M
ar-2
017
0 1
,192
,095
3
,335
,652
1
,781
,791
7
4,24
1 4
38,1
87
76,
347
40,
649
2,4
36,9
44
00
9,3
75,9
06
Depr
ecia
tion
and
impa
irmen
t0
279
,132
2
,836
,784
3
30,0
46
21,
130
69,
984
3,1
74
5,4
39
568
,520
0
0 4
,114
,209
Disp
osal
s0
(1,2
55)
0 (2
3,47
4) 6
19
96,
293
00
- 0
0 7
2,18
3
Tran
sfer
s and
adj
ustm
ents
00
0 1
82,5
96
462
1
32,7
42
00
59,
889
00
375
,689
Bala
nce
at 2
0-M
ar-2
018
0 1
,469
,972
6
,172
,436
2
,270
,959
9
6,45
2 7
37,2
06
79,
521
46,
088
3,0
65,3
53
00
13,
937,
987
Book
val
ue:
At 2
0-M
ar-2
016
7,8
10,1
50
5,9
53,3
80
19,
323,
090
544
,063
1
92,3
69
606
,714
3
,479
8
2,17
9 2
5,81
2,17
9 1
8,26
2,06
4 3
7,37
4,96
6 1
15,9
64,6
33
At 2
0-M
ar-2
017
7,8
60,7
44
4,8
15,5
33
3,1
01,5
28
2,1
92,9
79
91,
862
497
,699
6
,104
3
5,90
6 6
,015
,069
1
8,92
4,50
1 1
7,59
5,62
8 6
1,13
7,55
3
At 2
0-M
ar-2
018
10,
007,
062
5,9
15,4
04
42,
403,
550
2,6
80,6
64
153
,877
5
04,6
81
3,7
92
33,
085
6,7
55,4
06
5,5
84,0
19
22,
585,
159
96,
626,
699
BANK
PAS
ARGA
D (P
JSC)
NO
TES
to C
ONSO
LIDA
TED
FINA
NCIA
L ST
ATEM
ENTS
FIN
ANCI
AL Y
EAR
ENDE
D M
ARCH
20,
201
8
19-1
-1-
Gro
up's
tang
ible
fixe
d as
sets
are
fully
insu
red
agai
nst e
arth
quak
e, fi
re, a
nd fl
ood.
19-1
-2-
The
incr
ease
in a
sset
's T
rans
fers
and
adj
ustm
ents
and
Acc
umul
ated
dep
reci
atio
n ar
e m
ainl
y re
late
d to
MID
HEC
O C
o's
non-
cons
olid
ated
.
IRRm
www.bankpasargad.com 101
Managem
ent Report
Independent Auditor's R
eportFinancial S
tatements &
Notes
Land
Build
ing
Com
pute
r eq
uipm
ents
Vehi
cles
Furn
iture
and
Fi
xtur
es
Leas
hold
im
prov
emen
tsAs
sets
und
er
cons
truc
tion
Long
-ter
m
prep
aym
ents
Tota
l
Cost
of g
oods
:
Bala
nce
at 2
0-M
ar-2
016
4,1
76,8
38
3,0
73,3
04
805
,942
5
9,63
9 4
51,6
48
68,
335
0 1
,936
,747
1
0,57
2,45
3
Addi
tions
00
106
,936
1
,344
1
8,78
3 0
0 3
,258
,946
3
,386
,009
Disp
osal
s (3
,349
) (2
3,60
6) (8
7,60
2) (2
,273
) (1
0,31
0)0
00
(127
,140
)
Tran
sfer
s and
adj
ustm
ents
243
,317
5
08,6
32
00
0 2
,448
1
,526
,456
(2
,417
,191
) 4
,698
,044
Bala
nce
at 2
0-M
ar-2
017
4,4
16,8
06
3,5
58,3
30
825
,276
5
8,71
0 4
60,1
21
70,
783
1,5
26,4
56
2,7
78,5
02
13,
694,
984
Addi
tions
2
,034
,758
1
,040
,065
9
1,34
2 1
5,14
0 5
2,08
5 8
62
902
,257
8
2,54
9 4
,219
,058
Disp
osal
s (2
,251
) (1
2,86
7) (1
1,87
0) (3
,889
) (2
3,53
7)0
00
(54,
414)
Tran
sfer
s and
adj
ustm
ents
0 (5
,224
) (1
98,9
62)
0 1
89,3
02
0 (1
,002
,516
) (2
,740
,171
) (3
,757
,571
)
Bala
nce
at 2
0-M
ar-2
018
6,4
49,3
13
4,5
80,3
04
705
,786
6
9,96
1 6
77,9
71
71,
645
1,4
26,1
97
120
,880
1
4,10
2,05
7
Accu
mul
ated
dep
reci
ation
and
Ac
cum
ulat
ed im
pairm
ent:
Bala
nce
at 2
0-M
ar-2
016
0 4
51,7
02
594
,861
2
5,46
5 2
26,1
12
63,
383
00
1,3
61,5
23
Depr
ecia
tion
and
impa
irmen
t0
210
,909
1
42,0
42
9,6
42
50,
064
2,7
08
00
415
,365
Disp
osal
s0
(2,7
03)
(87,
689)
(2,0
51)
(8,1
37)
(0)
00
(100
,580
)
Tran
sfer
s and
adj
ustm
ents
00
00
0 (1
,412
)0
0 (1
,412
)
Bala
nce
at 2
0-M
ar-2
017
0 6
59,9
08
649
,214
3
3,05
6 2
68,0
39
64,
679
00
1,6
74,8
96
Depr
ecia
tion
and
impa
irmen
t0
183
,398
1
16,1
02
9,1
39
66,
267
3,1
74
00
378
,080
Disp
osal
s0
(2,4
13)
(11,
814)
(3,8
76)
(19,
184)
00
0 (3
7,28
7)
Tran
sfer
s and
adj
ustm
ents
00
(182
,669
)0
182
,669
(0
)0
0(0
)
Bala
nce
at 2
0-M
ar-2
018
0 8
40,8
93
570
,834
3
8,31
8 4
97,7
91
67,
853
00
2,0
15,6
89
Book
val
ue:
At 2
0-M
ar-2
016
4,1
76,8
38
2,6
21,6
02
211
,082
3
4,17
4 2
25,5
36
4,9
51
0 1
,936
,747
9
,210
,930
At20
-Mar
-201
7 4
,416
,806
2
,898
,422
1
76,0
63
25,
655
192
,080
6
,104
1
,526
,456
2
,778
,502
1
2,02
0,08
8
At 2
0-M
ar-2
018
6,4
49,3
13
3,7
39,4
11
134
,952
3
1,64
3 1
80,1
81
3,7
92
1,4
26,1
97
120
,880
1
2,08
6,36
8
19-2
-1-
Ban
k's
tang
ible
fixe
d as
sets
are
fully
insu
red
agai
nst e
arth
quak
e, fi
re, a
nd fl
ood.
19-2
-2-
Bal
ance
of
asse
ts u
nder
con
stru
ctio
n ar
e re
late
d to
cen
tral
bul
ding
of b
ank
pasa
rgad
19-2
- B
ank'
s ta
ngib
le fi
xed
ass
ets
BANK
PAS
ARGA
D (P
JSC)
NO
TES
to C
ONSO
LIDA
TED
FINA
NCIA
L ST
ATEM
ENTS
FIN
ANCI
AL Y
EAR
ENDE
D M
ARCH
20,
201
8
IRRm
102 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
19-2-2- land and building increase during the financial year
19-2-3- The title deeds ownership of 48 properties reported in tangible fixed assets have not been transferred to
bank yet. The legal process is in progress.
19-2-4- The most reduction in tangible fixed assets is arising from computer equipments transfer.
19-2-5- Assets under construction
The progress of Bank Pasargad headquarter building project has been about 74% and Project initial estimate
was IRR2,654 bn.
The project's construction expenses has been estimated IRR 675 bn and the exploiting date has been estimated
at 20 Mar 2019
19-2-6- Capitalized prepayments
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
Land Building Goodwill Split Total
Price consideration of Middle East Mabna Co. 518,760 634,040 1,726,200 3,000 2,882,000
Other branches 1,515,998 406,025 451,155 1,050 2,374,228
2,034,758 1,040,065 2,177,355 4,050 5,256,228
Balance at the beginning Additions Adjustments Transfers Balance at
the end
Head office building 1,526,456 452,666 0 (1,002,516) 976,606
Other 0 449,591 0 0 449,591
1,526,456 902,257 0 (1,002,516) 1,426,197
Balance at the beginning Additions Adjustments Transfers Balance at
the end
Birjand building projects 38,330 1,549 0 0 39,879
Shahid beheshti street branch 0 81,000 0 0 81,000
other 2,740,172 0 0 (2,740,172) 0
2,778,502 82,549 0 (2,740,172) 120,880
IRRm
IRRm
IRRm
www.bankpasargad.com 103
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ent Report
Independent Auditor's R
eportFinancial S
tatements &
Notes
19-2-7- Net balance of tangible and intangible fixed asstet to equity ratio
"Due to some operational problems in the previous circulars and the impossibility of complying banks with these cir-
culars which set the ratio of net assets to equity at 30%, the Central Bank of Islamic Republic of Iran ,according to the
circular no.94/62147 dated at 2015/06/01 set the ratio at 75%, On condition of the transfer of fixed assets surplus."
20-Mar-2018 20-Mar-2017
tangible fixed assets 12,554,980 9,390,026Less:Balance of tangible fixed assets revaluation reserve 0 0Provision for depreciation of tangible fixed assets (2,015,689) (1,674,896)Net tangible fixed assets 10,539,291 7,715,130Intangible fixed asstes 8,669,925 6,246,723Less:Balance of intangible fixed assets revaluation reserve 0 0Provision for depreciation of intangible fixed assets 0 0Net intangible fixed assets 8,669,925 6,246,723Capitalized prepayments 120,880 2,778,502Under construction and purchase Intangible properties 1,426,197 1,526,456Capital items in warehouse (Inventory of capital goods) 0 0Net fixed assets of foreign branches 0 0Confiscated collateral more than 2 years 2,026,293 1,609,439Capitalized rent items 0 0Purchased assets from Hire-purchase credit facilities 0 0Deposits paid for operational rent of tangible fixed asset 17,410 14,600sum of the numerator of ratio 22,799,996 19,890,850Equity 61,827,118 59,494,290Less:Balance of intangible and tangible fixed assets revaluation reserveUnrealized profit (0) (0)Retained Earning (0) (0)sum of denominator of ratio 61,827,118 59,494,290Net fixed assets ratio (%) 37 33
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
IRRm
104 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
20-Mar-2018 20-Mar-2017
Goodwill 8,108,999 5,915,865
Softwares 2,032,402 767,096
Patents 1,471,648 1,060,622
11,613,049 7,743,582
Business Goodwill
Computer Software
Software Development Patents Total
Cost:
Balance at 20-Mar-2016 4,901,226 372,846 0 38,542 5,312,614
Additions 926,247 253,788 0 6,208 1,186,243
Disposals (1,938) 0 0 0 (1,938)
Transfers and adjustments (0) 0 0 0 (0)
Balance at 20-Mar-2017 5,825,535 626,634 0 44,750 6,496,919
Balance at 21-Mar-2017 5,825,535 626,634 0 44,750 6,496,919
Additions 2,177,355 448,525 0 4,050 2,629,930
Disposals (0) 0 0 0 (0)
Transfers and adjustments (665) 0 0 0 (665)
Balance at 20-Mar-2018 8,002,225 1,075,159 0 48,800 9,126,184
Accumulated depreciation and Accumulated impairment:
Balance at 20-Mar-2016 0 126,024 0 0 126,024
Depreciation 0 124,171 0 0 124,171
Balance at 20-Mar-2017 0 250,195 0 0 250,195
Balance at 21-Mar-2017 0 250,195 0 0 250,195
Depreciation 0 206,063 0 0 206,063
Balance at 20-Mar-2018 0 456,258 0 0 456,258
Book value:
At 20-Mar-2016 4,901,226 246,822 0 38,542 5,186,590
At 20-Mar-2017 5,825,535 376,438 0 44,750 6,246,723
At 20-Mar-2018 8,002,225 618,901 0 48,800 8,669,925
20-1- Group's intangible assets
20- INTANGIBLE ASSETS
20-2- Bank's intangible assets
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
IRRm
IRRm
www.bankpasargad.com 105
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21- LEGAL DEPOSIT
21-1- Legal deposit at the central bank, calculated in accordance with paragraph 3 of article 14 of Monetary & Banking Law and based on rates set by the Money and Credit Council and central bank has confirmed it. Now legal deposit rate for Qard-al-hasan deposits and all deposits of free-trade zone branches is10% and for other deosits of mainland is 12%
22- OTHER ASSETS
20-Mar-2018 20-Mar-2017
legal deposit - mainland-IRR 64,182,153 53,198,760
legal deposit - mainland-foreign durrency 0 0
legal deposit - free-trade zone branches-IRR 133,072 99,107
legal deposit - free-trade zone branches-foreign currency 0 0legal deposit at other countries's central Bank-foreign currency 0 0
64,315,225 53,297,867
20-Mar-2018 20-Mar-2017
Customer's liabilities for term L/C-IRR 405,558 36,103
Customer's liabilities for term L/C-foreign currency 43,202,007 25,868,044
43,607,565 25,904,147less
Advances and middle recieves for term L/C-IRR (75,783) (8,661)
advances and middle recieves for term L/C-foreign currency (296,566) (84,945)
provision of doubtful debts 0 0
43,235,215 25,810,542
Group Bank
Note 20-Mar-2018 20-Mar-2017 20-Mar-2018 20-Mar-2017
"Customer's Net liabilities for term L/C" 22-1 43,235,215 25,810,542 43,235,215 25,810,542
Non-operational real estate 0 0Confiscated collateral assets 22-2 13,536,249 8,726,007 13,536,249 8,726,007 Security deposit 17,860 14,600 17,410 14,600 Assets' insurance prepaid 0 0Prepaid rent 0 14,901 8,419 14,901 Supplies inventory 0 0 0 0Items in transit 0 0 0 0Gold medals' inventory 2,575 3,002 2,575 3,002 Stamp duty 9,134 8,673 9,134 8,673 Other prepaid 589,163 371,553 580,745 418,937 Long-term notes receivable 0 0 0 0Long-term portion of employees loans 20,334 4,946 0 0Customer's long-term liabilities 2,520 1,571 0 0Non-current assets held for sale 275,715 62,856 0 0Other (mostly receivables for employees' prefrence shares)
912,287 1,060,197 617,203 861,778
58,601,051 36,078,848 58,006,948 35,858,440
22-1- Customer's Net liabilities for term L/C
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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106 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
22-2- Confiscated collateral assets
22-2-1- Age decomposition for intangible Confiscated collateral balance
22-2-2- Gain and loss from sale of confiscated collateral was declared in note 48
23- GOODWILL ARISING ON CONSOLIDATION
23-1- The goodwill reduction is mainly related to ownership transfer of Mabna Khavar Miyaneh Co.,
which had been identified in previous financial year regarding Middle East Mines & Mineral Industries
Development Holding CO's share.
20-Mar-2018 20-Mar-2017
less than one year from confiscated date 10,292,482 5,719,347
one to two years from confiscated date 1,217,474 1,397,221
more than tow years from confiscated date 2,026,293 1,609,439
13,536,249 8,726,007
Group
Note 20-Mar-2018 20-Mar-2017
Balance at the beginning of the year 3,036,517 12,020,448
Goodwill acquired during the year 1,358,657 2,321,312
Goodwill adjustments 23-1 (580,766) (11,325,243)
Balance at the end of the year 3,814,408 3,016,517
Accumulated amortization at the beginning of the year (170,487) (625,945)
Amortization for the year (121,181) (148,243)
Amortization adjustments 58,600 603,701
Accumulated amortization at the end of the year (233,068) (170,487)
3,581,340 2,846,031
20-Mar-2017 Confiscated Disposals 20-Mar-2018
Tangible:
Furniture 894 0 0 894
Goods 0 0 0 0
vehicle 0 250 0 250
Shares 1,981,315 159,130 0 2,140,445
1,982,209 159,380 0 2,141,589
Intangible:
Residential 5,544,028 3,888,810 (798,786) 8,634,052
commercial/administrative 512,263 770,602 (12,952) 1,269,913
factory 9,951 97,309 (9,951) 97,309
Land 677,556 797,509 (81,679) 1,393,386 6,743,798 5,554,230 (903,368) 11,394,660
8,726,007 5,713,610 (903,368) 13,536,249
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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24- DUES TO BANKS AND OTHER FINANCIAL INSTITUTIONS
Note 20-Mar-2018 20-Mar-2017
Central bank:
Deposit-IRR 0 0
Demand deposit -foreign currency 0 0
Term deposits - foreign currency 30,516,779 19,289,044
Overdraft from current account 685,705 1,452,082
settlement of shetab transaction 1,351,874 850,175
penalty of overdraft 0 1,961,990
overdraft balance 0 383,388
Debts for purchase of foreign currency 1,362,984 0
Underpaid/(overpaid) for purchase of foreign currency 0 0
Debt's for Foreign Exchange Reserve Account (FRA) 0 0
Credit facilities received-IRR 0 0
Credit facilities received-foreign currency 0 0
Other
33,917,342 23,936,679
Local Banks and credit institutes:
Demand deposits - IRR 29,177 328
Demand deposits - foreign currency 822,486 938,027
Payments for clearing bank's checks 0 0
Term Deposit-IRR 11,927 68,977
Interbank credit facilities received-IRR 24-1 0 11,510,000
Credit facilities received-foreign currency 0 0
Other 0 0
863,590 12,517,332
Foreign banks:
Demand deposits - IRR 0 0
Demand deposits - foreign currency 3,782,451 1,761,788
credit facilities received-foreign currency 0 0
Overdraft from current account 0 0
Other 0 0
3,782,451 1,761,788
38,563,382 38,215,799
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
24-1- Credit facilities received includes 2 interbank credit facilities with profit rate18%
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108 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
25- CUSTOMERS DEPOSIT
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
25-1- Demand and similar deposits of Individuals and legal entities
Group Bank
Note 20-Mar-2018 20-Mar-2017 20-Mar-2018 20-Mar-2017
Individuals:
Demand deposits and similar 25-1 3,375,059 2,459,590 3,375,059 2,459,590
Savings deposits and similar 25-2 3,694,587 1,253,646 3,694,587 1,253,646
Other deposits and advances received 25-3 2,495,736 0 2,495,736 1,217,442
9,565,382 3,713,236 9,565,382 4,930,678
Legal entities:
Demand deposits and similar 25-1 4,299,348 4,002,308 4,318,812 4,002,308
Savings deposits and similar 25-2 4,962,398 3,350,483 4,962,398 3,350,483
Other deposits and advances received 25-3 3,173,043 0 3,173,043 2,410,727
12,434,789 7,352,791 12,454,253 9,763,518
Other:
Demand deposits and similar 25-1 10,051,774 5,875,824 10,051,774 5,875,824
Savings deposits and similar 25-2 67,402 63,624 67,402 63,624
Other deposits and advances received 25-3 4,687,343 5,492,707 4,806,573 1,947,340
14,806,519 11,432,155 14,925,749 7,886,788
36,806,689 22,498,182 36,945,383 22,580,984
20-Mar-2018 20-Mar-2017
Current account - IRR 7,924,096 6,514,341
Current account - foreign currency 42,493 2,520
checks issued 2,163,413 1,010,568
Bank's drafts - IRR 5,462 5,462
Bank's drafts - foreign currency 0 4,443
Unused managed funds 585 626
Temporary creditors - IRR 4,324,373 3,747,084
Temporary creditors - foreign currency 3,285,222 1,052,677
17,745,644 12,337,721
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Group Bank
Note 20-Mar-2018 20-Mar-2017 20-Mar-2018 20-Mar-2017
Dividends payable to shareholders 26-1 1,955,347 1,351,150 165,040 1,024,921
1,955,347 1,351,150 165,040 1,024,921
20-Mar-2018 20-Mar-2017
Qard-al-hasan savings deposits - IRR 896,005 694,682
Qard-al-hasan savings deposits - foreign currency 7,789,910 3,946,191
Special Qard-al-hasan deposits 22,566 19,160
Unused special Qard-al-hasan deposits 15,906 7,721
8,724,387 4,667,754
20-Mar-2018 20-Mar-2017
Cash deposits for L/Gs - IRR 4,023,586 3,413,138
Cash deposits for L/Gs - foreign currency 539,305 285,126
Advances received on L/Cs - IRR 195,618 94,997
Advances received on L/Cs - foreign currency 5,716,844 1,782,248
10,475,352 5,575,509
25-2- Savings and similar deposits of Individuals and legal entities
25-3- Other deposits and advances received of Individuals and legal entities
26- DIVIDENDS PAYABLE
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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110 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
26-1- Dividends payable - main company
27- Income Tax Provision
DPS approved dividends
Balance at 20-Mar-2017
Dividends paid during
the year
Capital increase from
claims
Balance at 20-Mar-2018
For the financial year ended 20-Mar-2006 35 122,500 2,919 1,303 0 1,616
For the financial year ended 20-Mar-2007 175 612,500 5,022 3,224 0 1,798
For the financial year ended 19-Mar-2008 200 1,050,000 1,408 1,034 0 374
For the financial year ended 20-Mar-2009 220 1,540,000 15,220 10,988 0 4,232
For the financial year ended 20-Mar-2010 300 3,325,000 0 0 0 0
For the financial year ended 20-Mar-2011 180 4,158,000 28,543 22,949 0 5,594
For the financial year ended 19-Mar-2012 230 6,269,340 14,057 459 0 13,598
For the financial year ended 20-Mar-2013 250 7,500,000 21,262 3,840 0 17,422
For the financial year ended 20-Mar-2014 320 9,600,000 15,269 3,670 0 11,599
For the financial year ended 20-Mar-2015 200 8,400,000 9,672 6,983 0 2,689
For the financial year ended 19-Mar-2016 160 8,064,000 911,548 805,428 0 106,120
Total 50,641,340 1,024,921 859,878 0 165,040
Group Bank
20-Mar-2018 20-Mar-2017 20-Mar-2018 20-Mar-2017
Balance at the beginning of the year 1,529,350 3,578,141 504,715 2,578,348
Income tax for the financial year 197,097 129,921 0 0
Adjustment of prior periods' income tax provision 25,732 22,835 0 0
Paid during the year (191,718) (2,172,597) (0) (2,071,710)
Total 1,560,461 1,558,300 504,715 506,638
Tax Prepayments (129,438) (28,950) (87,974) (1,923)
1,431,024 1,529,350 416,741 504,715
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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20-M
ar-2
018
20-M
ar-2
017
Fina
ncia
l ye
ar
Self-
asse
ssed
pr
ofit
Self-
asse
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ta
xabl
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com
e
Self-
asse
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ta
xTa
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asse
ssm
ent n
otice
Fina
l ta
x no
tice
Tax
pa
idBa
lanc
eBa
lanc
eM
etho
d of
ass
essm
ent
2014
/15
13,9
52,4
826,
548,
932
1,30
9,78
62,
883,
967
2,87
9,42
02,
879,
420
00
Exam
inati
on o
f boo
ks- F
inal
tax
notic
e iss
ued
2015
/16
12,1
36,1
922,
511,
310
502,
262
2,60
7,66
00
502,
262
504,
715
506,
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Exam
inati
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f boo
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sses
smen
t no
tice
2016
/17
(6,4
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00
3,90
0,18
80
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860
0Ex
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of b
ooks
- Ass
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/18
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40
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nder
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ation
504,
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506,
638
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prep
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(87,
974)
(1,9
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416,
741
504,
715
27-1
- In
com
e ta
x is
fina
lized
and
set
tled
by th
e en
d of
fina
ncia
l yea
r 20
14/1
5, h
owev
er, t
he p
roce
edin
g w
as c
halle
nged
by
the
ban
k
and
case
s fo
r ye
ars
2009
/201
0 to
201
4/20
15 a
re b
eing
inve
stig
ated
in th
e su
perm
e ta
x co
unci
l or
the
adm
inis
trat
ive
just
ice
trib
unal
.
27-2
- Th
e su
mm
ary
of ta
x pa
yabl
e fo
r th
e ye
ars
2014
/15
to 2
017/
18 is
as
follo
w:
27-2
-1-
Tax
for
the
finan
cial
yea
r 20
14/1
5: in
acc
orda
nce
with
the
nego
tiatio
ns w
ith c
hairm
an o
f Ira
nian
Nat
iona
l tax
ad
mis
sion
org
ani-
zatio
n an
d co
llect
ing
part
of f
orgi
vene
ss o
f pen
altie
s, th
e re
st o
f the
pen
altie
s w
as p
aid,
but
the
bank
has
ob
ject
ed to
the
high
tax
coun
-
cil a
nd b
ased
on
the
coun
cil's
vot
e, th
e ca
se is
reffe
red
to th
e di
sput
e re
solu
tion
boar
d an
d is
und
er re
view
.
27-2
-2-
Tax
for
the
finan
cial
yea
r 20
15/1
6: in
acc
orda
nce
with
the
asse
ssm
ent n
otic
e N
o. 3
0465
822
date
d 9
Jan
. 201
7 w
as im
par
ted
to
the
bank
on
Janu
ary
14,2
017.
Ban
k P
asar
gad
prot
este
d ag
ains
t bas
is o
f tax
able
inco
me
asse
ssm
ent a
nd n
ot ta
king
tax
exem
ptio
ns to
tax
disp
ute
reso
lutio
n bo
ards
and
the
file
is b
eing
inve
stig
ated
in th
e pr
imar
y ta
x di
sput
e re
solu
tion
boar
d.
27-2
-3-
Tax
for
the
finan
cial
yea
r 20
16/1
7: in
acc
orda
nce
with
the
asse
ssm
ent n
otic
e N
o.43
2018
12 d
ated
15
Jan.
201
8 w
as im
par
ted
to
the
bank
on
Janu
ary
17, 2
018
.Ban
k P
asar
gad
prot
este
d ag
ains
t bas
is o
f tax
able
inco
me
asse
ssm
ent a
nd n
ot ta
king
tax
exem
ptio
ns to
tax
disp
ute
reso
lutio
n bo
ards
and
the
file
is b
eing
inve
stig
ated
in th
e pr
imar
y ta
x di
sput
e re
solu
tion
boar
d. A
lso,
due
to fa
ilure
to s
ubm
it
audi
ted
finan
cial
sta
tem
ents
,IRR
779
bn
have
bee
n cl
aim
ed a
s fin
es.
27-2
-4-
In th
e fis
cal y
ear
2017
/18,
the
bank
has
no
self-
asse
ssed
tax
acco
rdin
g to
tax
exem
ptio
ns.
BANK
PAS
ARGA
D (P
JSC)
NO
TES
to C
ONSO
LIDA
TED
FINA
NCIA
L ST
ATEM
ENTS
FIN
ANCI
AL Y
EAR
ENDE
D M
ARCH
20,
201
8 IRRm
112 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
28- ACCOUNTS AND NOTES PAYABLE
Group
Note 20-Mar-2018 20-Mar-2017
Accounts payable 2,981,412 3,212,777
Notes payable 28-1 2,711,986 141,092
5,693,398 3,353,870
28-1- The balance of accounts payable is mainly about the insured's loss and is related to Pasargad Insur-
ance Co. and also part of it, is about Pasargad Energy Development Company for fuel purchase.
29- PROVISIONS AND OTHER LIABILITIES
Group Bank
Note 20-Mar-2018 20-Mar-2017 20-Mar-2018 20-Mar-2017
Facilities received from National Development Fund of Iran 29-1 47,997,334 14,282,103 47,997,334 14,282,103
Bank's liabilities for Term L/C - IRR 405,558 36,103 405,558 36,103
Bank's liabilities for Term L/C - Foreign Currency 43,202,007 25,868,044 43,202,007 25,868,044
Insurance premiums payable 213,539 111,091 12,571 11,858
Provision for expenses payable 29-3 11,148,252 7,531,942 0 0
Received from customers for foreign currency issues 2,252,912 5,041,888 2,252,912 5,041,888
Share of exchange companies' profit on foreign currency 228,378 228,630 228,378 228,630
Foreign currency credit card balance 2,808 2,068 2,808 2,068
Internal creditors - financial & treasury management department 869,275 510,703 869,275 510,703
Ministry of Economic Affairs & Finance 799,454 694,947 0 0
Withholding performance 3,015,865 1,549,283 0 0
Other creditors 29-2 8,673,844 6,488,578 8,663,797 6,262,340
Notes payable 1,379,401 1,201,471 0 0
Other accounts payable 3,355,323 1,511,386 0 0
Insurance premiums' provision 21,052,788 13,233,569 0 0
Deferred compensation provision 2,362,279 1,669,519 0 0
Other technical reserves 1,408,798 1,158,210 0 0
Insurance premiums for future years 112,180 88,686 0 0
Value added tax 0 17,220 0 0
Items in transit 0 1,855 0 1,855
148,479,994 81,227,296 103,634,640 52,245,593
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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29-1- Facilities received from National Development Fund of Iran:
Group
20-Mar-2018 20-Mar-2017
Advances received from other companies 1,149,215 389,059
1,149,215 389,059
Amount Currency Receipt date Due date The number of installments
Profit rate (%)
Balance Balance
Foreign Currency Credit Facilities:
Sirjan Iranian Steel Co. 116,331,252.67 "USD Transaction rate" 23-Nov-2016 16-Feb-2023 10 6 116,331,252.67 15,298,553
Bootiya Iranian Steel Co. 120,941,297.09 "USD Transaction rate" 26-Nov-2016 15-Feb-2023 9 6 120,941,297.09 15,904,812
Iranian Babak Copper Co. 69,798,588.03 "USD Transaction rate" 27-Nov-2016 26-Feb-2023 10 6 69,798,588.03 9,179,111
Middle East Mines & Mineral Renovation & Development Co. 5,991,072.11 "USD
Transaction rate" 23-Nov-2016 25-Jan-2023 10 6 5,991,072.11 787,879
Naftanir Industrial Co. 572,430.82 "USD Transaction rate" 23-Nov-2016 25-Oct-2020 3 8 572,430.82 92,373
Naftanir Industrial Co. 640,968,053.53 "EUR Transaction rate" 12-Jun-2016 23-Nov-
2024 10 8 640,968,053.53 33,303
Para Behin Palayesh Naft e Gheshm 29,007,849.47 "USD
Transaction rate" 16-May-2017 20-Dec-2024 10 6 29,007,849.47 3,814,780
Pasargad Energy Development Co. 21,949,337.52 "USD
Transaction rate" 8-Agu-2017 7-Sep-2023 10 8 21,949,336.52 2,886,523
47,997,334
29-2- The major of mentioned amount is concern to issued checks in hands, currency drafts, income tax and
debt to some contractors, as well as the return of the profits from sale of MIDHCO to the companies of the Dana
gostar e caspian & Andisheh tejarat e soroosh e sahand under the letter of 96/34448 dated 1 May 2017 of the
Central Bank of the Islamic Republic of Iran and counting in this chapter.
29-3- The mentioned amount is concern to Pasargad Energy Development Company and mainly based on the
estimated cost of contruction and delivery of the project to the Iranian Gas Engineering & Development Co.
30- ADVANCES RECEIVED
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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114 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
Group
20-Mar-2018 20-Mar-2017
Credit facilities received 1,684,790 1,078,984
Future profit and commissions (63,138) (2,840)
1,621,652 1,076,144
31-CREDIT FACILITIES RECEIVED
Group Bank
20-Mar-2018 20-Mar-2017 20-Mar-2018 20-Mar-2017
Balance at the beginning of the year 1,244,450 906,244 791,362 564,463
Paid during the year (95,230) (40,311) (71,074) (25,126)
Provision during the year 439,894 378,517 261,010 252,026
Balance at the end of the year 1,589,115 1,244,450 981,299 791,362
32- PROVISION FOR EMPLOYEES RETIREMENT BENEFITS
33- TERM DEPOSITS
Group Bank
Notes 20-Mar-2018 20-Mar-2017 20-Mar-2018 20-Mar-2017
TERM DEPOSITS
Long-term deposits 33-1 440,337,639 260,051,012 450,208,626 265,145,573
Short-term deposits 33-1 144,835,920 120,054,318 147,340,690 122,296,251
Special short-term deposits 33-1 4,677,178 77,314,670 4,677,178 77,314,670
Deposits from banks 0 0 0 0
589,850,737 457,420,000 602,226,494 464,756,494
PROFIT OF TERM DEPOSITS PAYABALE
Long-term deposits 33-2 5,418,585 7,644,062 5,418,585 7,644,062
Short-term deposits 33-2 494,868 608,327 494,868 608,327
Special short-term deposits 33-2 1,504,135 2,032,803 1,504,135 2,032,803
Deposits from Banks and Financial institutions 0 0 0 0
7,417,588 10,285,192 7,417,588 10,285,192
597,268,325 467,705,192 609,644,082 475,041,686
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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Gro
upBa
nk
20-M
ar-2
018
20-M
ar-2
017
20-M
ar-2
018
20-M
ar-2
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IRR
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,296
,251
Spec
ial s
hort-
term
de
posit
s:
One
-mon
th d
epos
its0
00
00
00
00
0
Thre
e-m
onth
dep
osits
12,
559
1,2
15,9
99
1,2
28,5
58
25,
919,
016
12,
559
1,2
15,9
99
1,2
28,5
58
25,
374,
191
544
,824
2
5,91
9,01
5
Six-
mon
th d
epos
its 1
,334
,215
8
87,0
12
2,2
21,2
27
51,
176,
142
1,3
34,2
15
887
,012
2
,221
,227
5
0,57
8,28
8 5
97,8
53
51,
176,
141
Nin
e-m
onth
dep
osits
1,1
68,7
66
58,
626
1,2
27,3
92
219
,513
1
,168
,766
5
8,62
6 1
,227
,392
1
94,4
55
25,
057
219
,512
Long
-ter
m d
epos
its:
Certi
ficat
es o
f dep
osit
202
,201
,493
0
202
,201
,493
2
5,10
0 2
02,6
15,3
62
0 2
02,6
15,3
62
25,
100
0 2
5,10
0
One
-yea
r dep
osits
122
,923
,106
1
6,43
0,96
7 1
39,3
54,0
73
161
,920
,643
1
29,6
63,1
06
17,
471,
986
147
,135
,092
1
50,0
41,3
46
11,
879,
298
161
,920
,644
Two-
year
dep
osits
1,4
82,8
50
0 1
,482
,850
3
,764
,214
1
,482
,850
0
1,4
82,8
50
3,7
64,2
14
0 3
,764
,214
Thre
e-ye
ar d
epos
its 7
1,10
2 4
7,72
6,00
0 4
7,79
7,10
2 3
2,55
8,82
9 7
1,10
2 4
7,72
6,00
0 4
7,79
7,10
2 1
38,8
29
32,
420,
000
32,
558,
829
Four
-yea
r dep
osits
11,
786
0 1
1,78
6 3
8,88
9 1
1,78
6 0
11,
786
38,
889
0 3
8,88
9
Five
-yea
r dep
osits
49,
490,
335
1
49,
490,
336
61,
743,
337
51,
166,
435
0 5
1,16
6,43
5 6
6,83
7,89
9 0
66,
837,
899
523,
532,
132
66,3
18,6
0558
9,85
0,73
745
7,42
0,00
053
4,86
6,87
167
,359
,623
602,
226,
494
419,
289,
462
45,4
67,0
3246
4,75
6,49
4
33-1
- Te
rm d
epo
sits
(div
ided
by
IRR
& fo
reig
n cu
rren
cy)
BANK
PAS
ARGA
D (P
JSC)
NO
TES
to C
ONSO
LIDA
TED
FINA
NCIA
L ST
ATEM
ENTS
FIN
ANCI
AL Y
EAR
ENDE
D M
ARCH
20,
201
8
* Th
e hi
gh g
row
th ra
te o
f sho
rt te
rm d
epos
its is
due
to th
e ba
n on
mor
e th
an o
ne y
ear t
erm
dep
osits
acc
ordi
ng t
o ci
rcul
ar 9
3/96
593
date
d
2 Ju
ly 2
014.
The
bal
ance
on
mor
e th
an o
ne y
ear t
erm
dep
osits
are
rela
ted
to p
eriv
ious
yea
rs.
IRRm
116 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
BANK
PAS
ARGA
D (P
JSC)
NO
TES
to C
ONSO
LIDA
TED
FINA
NCIA
L ST
ATEM
ENTS
FIN
ANCI
AL Y
EAR
ENDE
D M
ARCH
20,
201
8
20-M
ar-2
018
20-M
ar-2
017
Fina
ncia
l yea
rM
ore
than
22%
19%
-22%
16%
-19%
13%
-16%
10%
-13%
Less
than
10%
Tota
lTo
tal
EXPI
RED
00
00
00
00
2017
/18
2,28
7,56
437
,725
,635
113,
684,
633
190,
788,
563
13,5
63,8
6514
8,73
2,91
250
6,78
3,17
241
5,23
2,80
0
2018
/19
2,01
7,69
55,
398,
680
3,81
6,46
137
,681
,971
1,18
0,23
11,
026,
451
51,1
21,4
8911
,002
,437
2019
/20
00
09,
574
520,
136
42,1
04,6
2642
,634
,336
33,6
32,8
80
2020
/21
00
00
250,
863
635,
501
886,
364
2,40
8,75
7
2021
/22
& a
fter t
hat
00
00
227,
902
573,
231
801,
133
2,47
9,62
0
4,30
5,25
943
,124
,315
117,
501,
094
228,
480,
108
15,7
42,9
9719
3,07
2,72
160
2,22
6,49
446
4,75
6,49
4
2016
/17
3,32
2,49
961
,220
,501
176,
171,
488
63,0
19,1
4811
,791
,250
149,
231,
608
464,
756,
494
33-1
-1-
Long
-ter
m d
epo
sits
(div
ided
by
mat
urity
dat
e &
exp
ecte
d p
rofi
t ra
te)
IRRm
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33-1-2- Investment deposits movements - IRR
33-1-3- Investment deposits movements (foreign currency)
"Balance at 20-Mar-2017"
Received during the year
Withdrawal during the year
"Balance at 20-Mar-2018"
Long-term deposits:
Certificates of deposit 25,100 221,294,906 (18,704,644) 202,615,362
One-year deposits 150,041,346 297,665,889 (318,044,129) 129,663,106
Two-year deposits 3,764,214 0 (2,281,364) 1,482,850
Three-year deposits 138,829 0 (67,727) 71,102
Four-year deposits 38,889 0 (27,103) 11,786
Five-year deposits 66,837,898 0 (15,671,464) 51,166,434
Short-term deposits 122,296,251 4,264,122,450 (4,239,078,011) 147,340,690
Special short-term deposits 76,146,935 235,254,471 (308,885,865) 2,515,541
419,289,462 5,018,337,716 (4,902,760,307) 534,866,871
"Balance at 20-Mar-2017"
Received during the year
Withdrawal during the year
"Balance at 20-Mar-2018"
"Balance at 20-Mar-2018"
"Balance at 20-Mar-2017"
Equivalent-IRR Equivalent-IRR
Long-term deposits
USD 1,195,206,804 45,685,484 (175,954,362) 1,064,937,926 50,825,227 38,748,603
EUR 158,074,134 114,780,440 (26,814,752) 246,039,822 14,314,351 5,509,042
AED 3,419,390 54,300 (528,700) 2,944,990 38,588 30,183
GBP 253,505 103,083 (84,407) 272,181 18,547 10,189
CHF 39,400 0 (15,000) 24,400 1,272 1,280
Short-term & Special short term deposits
USD 2,279,105 4,296,581 (3,921,193) 2,654,493 126,688 73,889
EUR 31,280,947 13,404,207 (9,769,915) 34,915,239 2,031,334 1,090,172
AED 0 0 (0) 0 0 0
GBP 91,420 7,950 (46,320) 53,050 3,616 3,674
CHF 0 0 0 0 0 0
Deposits from banks and financial institutions
USD 0 0 0 0 0
EUR 0 0 0 0 0
AED 0 0 0 0 0
GBP 0 0 0 0 0
CHF 0 0 0 0 0
67,359,623 45,467,032
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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118 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
33-1-4- The composition of depositors of investment deposits
20-Mar-2018 20-Mar-2017
Number of Depositors Amount/IRRm Number of
Depositors Amount/IRRm
Deposits-IRR
legal entities 51,410 101,595,278 56,857 78,378,769
Individuals 5,409,780 433,271,593 5,209,809 340,910,693
Deposits from Banks and financial institutions 0 0 0 0
5,461,190 534,866,871 5,266,666 419,289,462
Deposits-foreign currency
legal entities 181 64,404,458 182 44,412,366
Individuals 4,171 2,955,165 2,787 1,054,666
Deposits from Banks and financial institutions 0 0 0 0
4,352 67,359,623 2,969 45,467,032
5,465,542 602,226,494 5,269,635 464,756,494
33-2- PROFIT of TERM INVESTMENT DEPOSITS PAYABALE
"Balance at 20-Mar-2017"
"on account payment
during the year"
Difference between on account & final
profitPaid during the year "Balance at
20-Mar-2018"
Short-term deposits 608,327 14,912,620 0 15,026,079 494,868
Special short-term deposits 680,118 26,880,275 0 27,539,294 21,099
General Certificates of deposit 0 3,090,737 0 3,090,737 0
Special Certificates of deposit 0 0 0 0 0
One-year deposits 1,278,057 23,071,756 0 23,506,329 843,484
Two-year deposits 46,652 385,275 0 415,607 16,320
Three-year deposits 6,614 18,929 0 24,998 545
Four-year deposits 11,904 5,543 0 17,104 343
Five-year deposits 6,300,835 12,682,123 0 14,425,066 4,557,892
Deposits from Banks and financial institutions 0 0 0 0 0
Term deposits (foreign currency) 1,352,685 4,115,738 0 3,985,386 1,483,037
10,285,192 85,162,996 0 88,030,600 7,417,588
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33-2-1- According to the circular No. 94/69383 dated 20 jan. 2015, procedure for determining the contribution of
each type of deposits of difference between on account & final profit, is approved in the minute No. 575 dated
30 April 2016, as follow and is applied in above table.
* Based on average of 52 weeks balance of term deposits
** On account & final profit of Specific Certificates of deposit is independent of joint calculations.
* The Bank started with capital of IRR 3,500,000 m (3,500,000,000 shares at IRR 1,000 per share) and increased
it to IRR 50,400,000 m (50,400,000,000 shares at IRR 1,000 per share) in some steps by March 20, 2017 as
follows:
Sharing ratio of difference between on account &final profit
(%)
The average profit rate during the
year* (%)
The difference of the allocated final
profit rate
Final profit rate(%)
Short-term deposits 12.64 12.64
Special short-term deposits 18.44 18.44
General Certificates of deposit
Special Certificates of deposit **
One-year deposits 18.91 18.91
Two-year deposits 18.54 18.54
Three-year deposits 20.74 20.74
Four-year deposits 24.56 24.56
Five-year deposits 20.46 20.46
Deposits from banks and financial institutions 12.64 12.64
Date of registration of capital increase
Capital Increase (%)
Amount of capital Increase
Amount of new share capital Source of capital increase
23-Oct-2007 50 1,750,000 5,250,000 Receivables from shareholders and cash contributions
14-Jul-2008 33.33 1,750,000 7,000,000 Receivables from shareholders and cash contributions
9-Nov-2009 10 700,000 7,700,000 Receivables from shareholders and cash contributions
21-Nov-2010 200 15,400,000 23,100,000 Cash contributions
13-Mar-2012 18 4,158,000 27,258,000 Receivables from shareholders and cash contributions
17-Mar-2013 10.06 2,742,000 30,000,000Receivables from shareholders and cash
contributions and Retained Earning
4-Aug-2015 40 12,000,000 42,000,000 Receivables from shareholders and cash contributions
20-Jul-2016 20 8,400,000 50,400,000 Receivables from shareholders and cash contributions
34- SHARE CAPITAL
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
120 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
34-1- Major shareholders and their respective shareholdings at balance sheet date are as follows:
34-1-1-
20-Mar-2018 20-Mar-2017
No. of shares % No. of shares %
Pars Aryan Investment Co. 4,982,729,973 9.89% 4,982,729,973 9.89%
Nick Andishan e Sorush e Fajr 2,412,208,950 4.79% 2,412,208,950 4.79%
Hoordad Rayan Co. 2,336,111,933 4.64% 2,336,111,933 4.64%
Sam Group Co. 1,891,803,816 3.75% 1,891,803,816 3.75%
Kharazmi Investment Co. 1,864,676,185 3.70% 1,864,676,185 3.70%
Milad Gostar Noavaran Co. 1,862,382,641 3.69% 1,862,382,641 3.69%
Tamin Atiyeh Sarmaye Ensani Pasargad Co. 1,467,181,430 2.91% 1,467,181,430 2.91%
Danesh Gostaran Ati Saz e Pooya Co. 1,427,514,649 2.83% 1,427,514,649 2.83%
Saba Investment development and management Co. 1,420,000,000 2.82% 1,420,000,000 2.82%
Ms. Setareh Mansoobi 1,304,436,038 2.59% 1,304,436,038 2.59%
Binesh Pazhooh Iranian Co. 1,304,316,955 2.59% 1,304,316,955 2.59%
Salin Investment Consulting Co. 1,282,225,669 2.54% 1,282,225,669 2.54%
Mr. Mohammad Hadi Nik La’al Fard 1,280,941,936 2.54% 1,280,941,936 2.54%
Sahab Omid Iranian Co. 1,157,134,251 2.30% 1,157,134,251 2.30%
Hamghadam Trade Co. 1,132,196,168 2.25% 1,132,196,168 2.25%
Refah and Tamin Atiye Omid Institute 949,022,757 1.88% 949,022,757 1.88%
Kosar Hamyari Institute 824,236,265 1.64% 824,236,265 1.64%
Bareghe Omid Iranian Co. 524,958,123 1.04% 524,958,123 1.04%
Nazm Avaran Pooyaye Iranian Co. 509,905,490 1.01% 509,905,490 1.01%
Other Shareholders (below one percent):
Legal entities 12,235,611,660 24.28% 12,237,203,808 24.28%
Individuals 8,230,405,111 16.32% 8,228,812,963 16.32%
Total 50,400,000,000 100% 50,400,000,000 100%
20-Mar-2018 20-Mar-2017
No. of shares % No. of people No. of shares % No. of people
Legal entities 39,584,216,915 78.54% 360 39,585,809,063 78.55% 364
Individuals 10,815,783,085 21.46% 56,149 10,814,190,937 21.45% 55,977
Total 50,400,000,000 100 56,509 50,400,000,000 100 56,341
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35-1- In accordance with Article 108 of the Bank's articles of association and Article 33 of Monetary & Banking
Law, at least 15% and Maximum 20% of the Bank's net profit is allocated to legal reserve. This is compulsory
until the legal reserve equals the Bank's capital.
36-1- In accordance with Article 109 of the Bank's articles of association, the board of directors can allocate
part of the Bank's net profit to other reserves.
35- LEGAL RESERVE
36 - OTHER RESERVES
37- NON-CONTROLLING INTERESTS
20-Mar-2018 20-Mar-2017
Balance at the beginning of the year 11,609,848 11,609,848
Transfer from distributable profit 0 0
Balance at the end of the year 11,609,848 11,609,848
20-Mar-2018 20-Mar-2017
Balance at the beginning of the year 3,869,949 3,869,949
Transfer from distributable profit 0 0
Balance at the end of the year 3,869,949 3,869,949
Group
20-Mar-2018 20-Mar-2017
Share of capital 11,471,502 9,944,385
Share of reserves 1,621,238 635,018
Share of retained earnings 993,231 2,154,964
14,085,971 12,734,367
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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122 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
Group Bank
Note 2017/18 2016/17 2017/18 2016/17
Joint Non-joint Total Joint Non-joint Total
Income from credit facilities 38-1 86,467,652 72,743,253 86,538,592 8,209,307 94,747,899 75,143,755 6,071,224 81,214,979
Income from deposits
38-2 2,390,230 1,986,784 1,627,152 763,078 2,390,230 1,327,653 659,130 1,986,783
Total income 88,857,882 74,730,037 88,165,744 8,972,385 97,138,129 76,471,408 6,730,354 83,201,762
38- INCOME FROM CREDIT FACILITIES AND DEPOSITS
2017/18 2016/17
IRRForeign
currency IRRForeign
currency
Joint Non-joint Total Non-joint Total Joint Non-joint Total Non-joint Total
Instalment sales 38,459 0 38,459 0 38,459 40,239 0 40,239 0 40,239
Ju'alah 109,336 0 109,336 0 109,336 148,457 0 148,457 0 148,457
Hire-purchase 205 0 205 0 205 206 0 206 0 206
mudarabah 3,597,773 0 3,597,773 0 3,597,773 3,874,443 0 3,874,443 0 3,874,443
Musharakah 80,289,664 0 80,289,664 0 80,289,664 68,160,153 0 68,160,153 0 68,160,153
Debt purchase 99,675 0 99,675 0 99,675 3,238 0 3,238 0 3,238
Murabaha 121,214 0 121,214 0 121,214 13,188 0 13,188 0 13,188
Foreign currency credit facilities
0 0 0 5,664,728 5,664,728 0 0 0 3,366,629 3,366,629
Late payment penalties
2,269,899 5,769 2,275,668 294,937 2,570,605 2,861,616 1,109 2,862,725 61,878 2,924,603
Late payment penalties- debtors for paid L/Cs
0 2,070,272 2,070,272 (2,305) 2,067,967 0 2,462,344 2,462,344 (51,849) 2,410,495
Late payment penalties- debtors for paid L/Gs
0 175,868 175,868 42 175,910 0 231,081 231,081 32 231,113
Late payment penalties- debtors for paid credit cards
12,367 0 12,367 0 12,367 42,215 0 42,215 0 42,215
86,538,592 2,251,909 88,790,501 5,957,398 94,747,899 75,143,755 2,694,534 77,838,289 3,376,690 81,214,979
38-1- Income from credit facilities
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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Group Bank
2017/18 2016/17 2017/18 2016/17
Note Total Total IRR (joint)Foreign
currency (non-joint)
Total IRR (joint)Foreign
currency (non-joint)
Total
Realized profit/(loss) from Investments
Dividend from investment in companies
39-1 978,542 1,158,747 799,250 0 799,250 466,604 0 466,604
Profit/(loss) from sale of shares 39-2 7,375,986 6,047,200 (15,158) 0 (15,158) (119,380) 0 (119,380)
8,354,528 7,205,947 784,092 0 784,092 347,224 0 347,224
2017/18 2016/17
IRR Foreign currency IRR Foreign
currency
Joint Non-joint Total Non-joint Total Joint Non-joint Total Non-joint Total
Bonus on legal deposit (Bank's & depositors' share)
0 592,119 592,119 0 592,119 0 504,541 504,541 0 504,541
Profit from term deposits with other banks
1,604,316 0 1,604,316 170,959 1,775,275 1,327,653 0 1,327,653 154,589 1,482,242
Profit from participation bonds certificates of deposit and sukuk
22,836 0 22,836 0 22,836 0 0 0 0 0
1,627,152 592,119 2,219,271 170,959 2,390,230 1,327,653 504,541 1,832,194 154,589 1,986,783
39- NET INVESTMENT PROFIT (LOSS)
38-2- Profit from deposits
* Profit/(loss) from the sale of shares in the group is mainly related to the Pasargad Arzesh Afarinan Co. that is concern
to shares sale profit of PEDC Co., MIDHCO and Pasargad Arian Communications Technologhy Development Co.
2017/18 2016/17
Note IRR (Joint)Foreign
Currency (Non-Joint)
Total IRR (Joint)Foreign
Currency (Non-Joint)
Total
Dividends from long-term investments 39-1-1 695,554 0 695,554 267,483 0 267,483
Dividends from Tehran Stock Exchange & OTC listed companies
39-1-2 13,866 0 13,866 59,652 0 59,652
Dividends from listed companies (Long-term) 39-1-3 89,830 0 89,830 139,469 0 139,469
799,250 0 799,250 466,604 0 466,604
39-1- Dividends from investments in companies
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
IRRm
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124 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
2017/18 2016/17
IRR (Joint)
Foreign Currency
(Non-Joint)Total IRR (Joint)
Foreign Currency
(Non-Joint)Total
Long-term investments in Pasargad Group companies:
Pasargad Arzesh Afarinan Co. 244,988 0 244,988 0 0 0
Pasargad Aryan ICT Co. 123,970 0 123,970 13,230 0 13,230
Mabna Khavar Miyaneh Co. 0 0 0 0 0 0
Pasargad Insurance Co. 66,339 0 66,339 71,442 0 71,442
Middle East Mines & Mineral Industries Development Holding Co. 0 0 0 0 0 0
Bank Pasargad E-Payment Co. 499 0 499 1,575 0 1,575
Pasargad Leasing Co. 26,800 0 26,800 23,450 0 23,450
Bank Pasargad Brokerage Co. 19,600 0 19,600 19,600 0 19,600
Iranian re-insurance Co. 19,875 0 19,875 19,900 0 19,900
Pasargad Machinery and Equipment Leasing Co. 0 0 0 2 0 2
Pasargad Foreign Exchange Co. 72,000 0 72,000 54,000 0 54,000
Nasim Salamat Co. 11,458 0 11,458 1,462 0 1,462
Dividends from Long-term Investments (Pasargad Group companies) 585,529 0 585,510 204,661 0 204,661
Other long-term investments:
Andishe Farda Mutual Investment Fund 42,169 0 42,169 46,436 0 46,436
Iran Credit Scoring Consulting Co. 5,275 0 5,275 3,103 0 3,103
Shaparak Co. 14,826 0 14,826 0 0 0
National wrestling Fund 9,186 0 9,186 5,732 0 5,732
Andishe Zarin Fund 6,612 0 6,612 7,362 0 7,362
Other Investments 31,957 0 31,957 189 0 189
Dividends from other associates 110,025 0 110,025 62,822 0 62,822
Dividends from Long-term Investments 695,554 0 695,554 267,483 0 267,483
39-1-1- Dividends from investment in Pasargad Group companies and other associates
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IRR (joint) Foreign currency (non-joint) Total IRR (joint) Foreign currency
(non-joint) Total
Short-term investments:
Tehran Securities Exchange companies:
Ansar Bank 2,449 0 2,449 14,370 0 14,370
Day Bank 0 0 0 120 0 120
Asan Pardakht Persian Co. 500 0 500 0 0 0
Arfa Steel Co. 16 0 16 0 0 0
Bahman Diesel Co. 30 0 30 0 0 0
Esfahan Oil Refining Co. 75 0 75 0 0 0
Bandar Abbas Oil Refining Co. 1,215 0 1,215 0 0 0
Tehran Oil Refining Co. 66 0 66 0 0 0
Shiraz Oil Refining Co. 6 0 6 0 0 0
Pardis Petrochemical Co. 239 0 239 0 0 0
Khorasan Petrochemical Co. 0 0 0 3,340 0 3,340
Shiraz Petrochemical Co. 0 0 0 1,429 0 1,429
Fajr Petrochemical Co. 6,864 0 6,864 3,558 0 3,558
Mobin Petrochemical Co. 0 0 0 5,439 0 5,439
Alborz Distribution Co. 83 0 83 0 0 0
Farabi Pharmaceutical Co. 0 0 0 548 0 548
Reil Pradaze Seir Co. 0 0 0 324 0 324
Saipa Co. 53 0 53 0 0 0
Kharazmi Investment Co. 0 0 0 1,690 0 1,690
Rana Investment Co. 43 0 43 0 0 0
Civil Pension Fund General Trading Co. 994 0 994 0 0 0
Persian Gulf Petrochemical Co. 0 0 0 1,814 0 1,814
Niroo Mohareke Industrial Co. 6 0 6 0 0 0
Iran Alloy Steel Co. 77 0 77 0 0 0
Khouzestan Alloy Steel Co. 475 0 475 22 0 22
Esfahan's Mobarakeh Steel Co. 468 0 468 0 0 0
Chadormalu Mining and Industrial Co. 0 0 0 0 0 0
Golgohar Mining and Industrial Co. 207 0 207 0 0 0
Lia Special Materials Co. 0 0 0 20 0 20
Asia Petro Omid Participation bond 0 0 0 132 0 132
State Ijara Participation bond 0 0 0 1,334 0 1,334
Ritel Ijara 2 Participation bond 0 0 0 125 0 125
Ritel Ijara Participation bond 0 0 0 12,748 0 12,748
Telecommunication Company of Iran Ijara Participation bond 0 0 0 630 0 630
Mapna Ijara Participation bond 0 0 0 747 0 747
Mahan airways Ijara Participation bond 0 0 0 2,548 0 2,548
Naft Staff Fund Participation bond 0 0 0 590 0 590
Kordestan cement Participation bond 0 0 0 31 0 31
Ritel Service Company Participation bond 0 0 0 2,359 0 2,359
Tehran municipality Participation bond 0 0 0 36 0 36
Sabzevaar municipality Participation bond 0 0 0 332 0 332
Shiraz municipality Participation bond 0 0 0 1,406 0 1,406
Mashhad municipality Participation bond 0 0 0 8 0 8
Tabriz urban train Participation bond 0 0 0 18 0 18
Rayan Saipa Leasing Participation bond 0 0 0 3,934 0 3,934
13,866 0 13,866 59,652 0 59,652
39-1-2- Dividends from Tehran Securities Exchange and OTC listed companies:
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39-1-3- Dividends from listed companies (Long-term):
2017/18 2016/17
IRR (joint)Foreign
currency (non-joint)
Total IRR (joint)Foreign
currency (non-joint)
Total
Long-term investments:
Mapna Group 88,838 0 88,838 138,809 0 138,809
Energy Bourse 978 0 978 652 0 652
Farabourse 14 0 14 8 0 8
Total 89,830 0 89,830 139,469 0 139,469
39-2- Profit/(loss) from sale of Company shares
2017/18 2016/17
Note Sale
Cost of shares sold (including
commissions)
Profit/(Loss) (after
deduction of commissions)
Gain/(loss)
Pasargad Group companies 39-2-1 0 0 0 0
Tehran Stock Exchange companies (not within pasargad group) 39-2-2 440,445 455,604 (15,159) (119,380)
440,445 455,604 (15,159) (119,380)
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No. of Shares Sale Cost of shares sold (including commissions)
Profit (Loss) (after deduction of commissions) Profit (Loss)
Islamic Treasury Bills 950621 0 0 0 0 11
Islamic Treasury Bills 950721 0 0 0 0 856
Islamic Treasury Bills 960613 9,162 8,927 8,417 510 0
Islamic Treasury Bills 960703 10,992 10,799 10,541 258 0
Islamic Treasury Bills 950724 34,750 33,816 32,962 854 0
Sabzevaar municipality Participation bond 3,300 3,364 3,433 (69) 0
Iran Khodro 1,450,000 3,770 4,126 (356) 0
Asan Pardakht Persian 500,000 12,618 12,327 291 0
Arfa Steel 350,000 876 1,047 (171) 0
Ansar Bank 2,017,632 4,213 2,018 2,195 34,146
Parsian Bank 0 0 0 0 (227)
Tejarat Bank 0 0 0 0 (29,496)
Saderat Bank 0 0 0 0 (1,559)
Mellat Bank 0 0 0 0 (7,886)
Pars Khodro 700,000 666 764 (98) 0
Esfahan Oil Refining Co. 700,000 2,171 2,036 135 305
Bandar Abbas Oil Refining Co. 981,159 5,213 5,067 146 0
Tabriz Oil Refining Co. 1,009,154 4,719 4,868 (149) 193
Tehran Oil Refining Co. 600,000 1,541 1,483 58 229
Lavan Oil Refining Co. 271,828 3,609 3,850 (241) 0
Pardis Petrochemical 0 0 0 0 (1,403)
Khark Petrochemical 110,000 1,547 1,597 (50) 0
Khorasan Petrochemical 0 0 0 0 (13,198)
Persian Gulf Petrochemical 3,557,613 15,882 29,358 (13,476) (10,876)
Zagros Petrochemical 40,000 814 834 (20) 0
Shiraz Petrochemical 0 0 0 0 (48,910)
Fajr Petrochemical 9,251,626 47,327 56,901 (9,574) 0
Maroon Petrochemical 18,610 545 576 (31) 0
Mobin Petrochemical 5,580,818 23,729 23,742 (13) (710)
Alborz Distribution 277,777 643 766 (123) (243)
Farabi Pharmaceutical 0 0 0 0 2,333
Esfahan Steel 0 0 0 0 (10,723)
Radiator Iran 60,000 180 200 (20) 0
Reil Pradaze Seir 15,361,066 26,340 20,076 6,264 327
Tous Gostar Investment 0 0 0 0 96
Kharazmi Investment 13,000,000 9,357 13,635 (4,278) 0
Tamin Pharmaceutical Investment 0 0 0 0 (490)
Rana Investment 1,035,519 1,059 1,211 (152) 0
Civil Pension Fund General Trading 2,083,956 2,559 3,414 (855) 0
Ghadir Investment 0 0 0 0 (2,676)
Tamin Investement Petrochemical 300,000 428 387 41 0
Mashhad municipality 81 81 84 (3) 0
Azar Aab Industries 0 0 0 0 689
Pars Paper Industries 0 0 0 0 268
Etemad Afarin Parsian Fund 1,000,000 18,962 16,220 2,742
Iran Alloy Steel 128,022 248 244 4 273
Khouzestan Alloy Steel 891,638 2,789 2,939 (150) 657
Khouzestan Alloy Steel-right issue 0 0 0 0 477
Esfahan's Mobarakeh Steel 0 0 0 0 (1,673)
South Hormozgan Alloy Steel 150,000 338 357 (19) 0
Bahman Group 600,000 1,173 1,213 (40) 474
Iran Auto Parts Industrial Group 80,000 124 178 (54) 0
Iran Khodro Investment Development 20,124 65 76 (11) 0
Parsian Oil & Gas Development 0 0 0 0 (33,362)
Sadid Pipe & Equipment 0 0 0 0 (3,024)
39-2-1- Profit/(loss) from sale of Tehran Securities Exchange and OTC shares
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No. of Shares Sale Cost of shares sold (including commissions)
Profit (Loss) (after deduction of commissions) Profit (Loss)
Asia Petro omid Ijara Participation bond 3,213 3,211 3,281 (70) 1
Ritel Service Company Participation bond 6,696 7,179 6,795 384 1,487
State Ijara Participation bond 14,543 13,651 14,329 (678) (2)
Ritel Ijara Participation bond 90,530 90,676 91,696 (1,020) 66
Ritel Ijara 2 Participation bond 3,300 3,485 3,417 68 0
Telecommunication Company of Iran Ijara Participation bond 5,325 5,417 5,484 (67) 0
Mapna Ijara Participation bond 5,970 5,966 5,994 (28) 0
Mahan airways Ijara Participation bond 18,055 19,305 18,832 473 84
Rayan Saipa Participation bond 0 0 0 0 (1)
Naft Staff Fund Participation bond 8,255 8,259 8,641 (382) 63
Kordestan cement Participation bond 316 316 340 (24) 0
Tehran municipality Participation bond 450 550 486 64 0
Shiraz municipality Participation bond 18,938 19,027 19,567 (540) 100
Tabriz urban train Participation bond 121 121 127 (6) 0
Saipa Leasing Participation bond 3,563 3,564 3,564 0 15
Chadormalu Mining and Industrial 350,000 585 628 (43) 0
Golgohar Mining and Industrial 1,490,000 3,216 3,411 (195) 0
Lia Special Materials 350,000 4,914 1,422 3,492 3,927
Niroo Mohareke Industrial 302,294 511 643 (132) 0
440,445 455,604 (15,159) (119,380)
40- SHARE OF BANK'S RESOURCES FROM JOINT INCOME
Share of bank's resources from joint income are as follows :
40-1 SHARE OF BANK'S RESOURCES FROM JOINT INCOME
If the bank's allocation of joint resources (i.e. financial facilities, investments, etc.) is less than the total free
resources from term deposits, the bank's share in joint income will be zero.
Year Ratio of Bank's resources to total allocation of resources (39-1) (%) Joint income Share of Bank's resources from joint
income
2016/17 14.41 76,818,632 11,067,697
2017/18 14.97 88,949,837 13,319,468
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40-2- Distribution of resources and allocation of joint resources between Bank and depositors:
2017/18 2016/17 Description
Average of Bank's allocation of joint resources (40-2-1) 498,991,739 396,780,492 52 weeks average
Average of term deposits (40-2-2) 480,115,454 387,360,180 52 weeks average
Deducted :legal deposit for term deposits (55,843,411) (47,746,109) 52 weeks average
Deducted :Free resources from term deposits
424,272,043 339,614,071
Share of Bank's resources from joint allocation of resources 74,719,696 57,166,421
40-2-1- Average of Bank's allocation of joint resources:
2017/18 (average amount)
2016/17 (average amount)
Net allocation to credit facilities 472,652,229 372,169,701
Net allocation to deposits in other banks 8,934,885 6,122,757
Net allocation to investments 17,404,625 18,488,034
Total allocation of joint resources 498,991,739 396,780,492
40-2-2- Average of investment deposits:
2017/18 (average amount)
2016/17 (average amount)
One-year deposits 165,830,693 181,452,791
Two-year deposits 2,120,041 4,458,599
Three-year deposits 107,461 172,707
Four-year deposits 27,195 44,560
Five-year deposits 59,869,472 71,472,711
Certificates of deposit 0 0
Short-term deposits 116,501,356 117,554,975
Other banks and credit institutions' investment deposits
0 0
Special short-term deposits 135,659,237 12,203,837
Total Average of investment deposits 480,115,455 387,360,180
* Share of bank resources from joint resources is equal to the joint resources minus the free resources from term
deposits. If the total amount of free resources from term deposits is greater than joint resources amount, the
surplus amount is referred to as surplus free resources from term deposits.
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40-3- Bonus on legal deposit of investment deposits
2017/18 2016/17
Average of legal deposit of investment deposits 55,843,411 47,746,109
Bonus of legal deposit 592,119 473,819
41- ATTORNEY FEE
Bank Pasargad attorney's fee for the financial year 2016/17 was announced 3%.
41-1- Announced Attorney's Fee
42- ON ACCOUNT RETURN PAID ON TERM DEPOSITS
Announced Attorney's Fee Applied Attorney's Fee
lower limit upper limit
Rate (%) 3 3 -1.13-4,824,769IRRm 0 12,728,161
Group Bank Pasargad
2017/18 2016/17 2017/18 2016/17
Short-term deposits 13,790,424 14,388,811 14,912,620 14,724,832
Special short-term deposits 26,880,275 2,024,176 26,880,275 2,024,176
Long-term deposits:
One-year deposits 22,735,035 34,439,481 23,071,756 34,439,481
Two-year deposits 385,275 829,142 385,275 829,142
Three-year deposits 18,929 35,959 18,929 35,959
Four-year deposits 5,543 10,974 5,543 10,974
Five-year deposits 12,682,123 14,645,209 12,682,122 15,588,411
Certificates of deposit 3,090,349 238 3,090,737 238
Other banks and credit institutions' term deposits 0 0 0 59,300
Total 79,587,953 66,373,990 81,047,257 67,712,513
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Profit of IRR investment deposits 43-1 79,587,953 66,373,990 81,047,257 67,712,513
Profit of foreign currency deposits 4,063,594 3,398,293 4,115,738 3,398,294
83,651,547 69,772,283 85,162,995 71,110,807
Group Bank Pasargad
Note 2017/18 2016/17 2017/18 2016/17
Net Qard-al-hasan commission 44-1 23,647 18,446 23,647 18,446
L/Cs opened 740,047 563,224 740,047 563,224
L/Gs issued 556,921 691,330 556,921 691,330
Foreign exchange transactions 21,483 5,464 21,483 5,464
Bank drafts 20,389 12,646 20,389 12,646
Collateral evaluation 4,808 4,599 4,808 4,599
Scrutiny of customers' credit dossier 669,102 394,420 669,102 394,420
Subscription of credit cards 35,059 61,373 35,059 61,373
Shetab network 1,399,138 1,092,327 1,399,138 1,092,327
Issuance of smart cards 34,916 33,242 34,916 33,242
Issuance of accounts' booklets 8,761 12,098 8,761 12,098
Sending SMS 256,519 187,473 256,519 187,473
Collateral's insurance 6,988 7,371 6,988 7,371
Bills of services 16,952 16,949 16,952 16,949
Other services 142,259 102,589 142,259 102,590
3,936,989 3,203,554 3,936,989 3,203,554
43- COST FOR PROFIT OF DEPOSITS
43-1- Compliance statement of on account and realizedcost for profit of deposits - IRR
44- FEE AND COMMISSION INCOME
2017/18 2016/17
On account profit on term deposits (note 43) 81,047,257 67,712,513
Underpaid/(overpaid) profit of term deposits (17,552,931) (11,676,181)
Final profit of term deposits 63,494,326 56,036,332
Overpaid profit of term deposits 17,552,930 11,676,181
Profit of IRR term deposits 81,047,256 67,712,513
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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44-1- Net Qard-al-hasan commission
2017/18 2016/17
Net Qard-al-hasan commission 23,647 18,446
23,647 18,446
45- FEE AND COMMISSION COST
Group Bank
2017/18 2016/17 2017/18 2016/17
Cost of Shetab network 1,880,352 1,835,072 1,880,352 1,835,072
Banking services and POS commissions 3,237 7,266 1,728 144
Commissions Paid to Brokers and Clearing House 240,560 144,215 240,560 144,216
2,124,149 1,986,553 2,122,640 1,979,431
46- SALES AND INCOME FROM SERVICES
Group
2017/18 2016/17
Sale of foreign currency 35,659,559 12,740,344
Income from services 8,793,790 17,616,168
Sales of goods and products 7,934,567 14,006,365
Sales return and allowances 0 (18,494)
Sales of properties & real estates 114,065 166,642
52,501,980 44,511,025
47- NET FOREIGN EXCHANGE TRANSACTIONS PROFIT (LOSS)
Bank
2017/18 2016/17
Foreign exchange transaction profit/(loss) 147,561 113,266
Foreign currency conversion profit/(loss) 13,682,798 (776,410)
13,830,359 (663,143)
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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Gain on disposal of properties and tangible and intangible assets 48-1 53,016 74,256 53,016 74,256
Gain on disposal of confiscated collaterals 48-1 166,208 94,462 166,208 94,462
Rent income 109,794 48,173 115,289 48,173
Gain on confiscated shares 75,298 178,571 75,298 178,571
Telegraph and mail income 1,155 916 1,155 916
Subscription income 24,742 2,041,174 24,742 1,501,492
430,213 2,437,552 435,708 1,897,870
48- NET OTHER INCOME
2017/18 2016/17
Cost Book value Selling price Gain/(loss) Gain/(loss)
Immovable fixed assets (land, building & goodwill) 15,117 12,704 28,358 15,654 49,729
Movable fixed assets 225,665 (5,749) 31,613 37,362 24,527
240,782 6,955 59,971 53,016 74,256
Confiscated properties 851,421 851,421 1,017,630 166,208 94,462
1,092,203 858,376 1,077,601 219,224 168,718
48-1- Gain on disposal of fixed assets
49- COST of GOODS AND SERVICES SOLD
Group
2017/18 2016/17
Cost of services 31,514,557 23,285,108
Direct materials 4,427,358 4,117,109
Direct labor cost 973,091 780,598
Overheads 2,944,583 1,470,168
Increase/(decrease) in finished goods inventory (1,985) (1,004)
39,861,574 29,651,979
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2017/18 2016/17 2017/18 2016/17
Salaries, wages and benefits 2,183,359 1,744,947 1,113,846 958,242
Social security contributions - share of employee 401,829 328,003 334,001 279,173
Bonuses 1,281,324 1,074,730 1,092,468 909,958
Over-time 253,951 214,497 207,047 177,859
Termination allowance 439,894 378,517 273,369 252,026
Commuting allowance 249,778 241,413 249,424 234,151
Future allowance 78,645 75,450 76,822 65,206
Housing allowance 0 11,101 0 11,101
Complementary insurance 130,588 128,322 103,327 102,246
Compensated absences 20,247 12,057 19,334 11,076
Efficiency allowance 715,415 438,985 701,996 433,083
Non-cash benefits 135,298 91,940 134,128 73,537
Business travel assignments' allowance 78,108 72,318 16,180 18,313
Other 173,408 91,853 71,831 72,022
6,141,844 4,904,133 4,393,773 3,597,993
Group Bank
Note 2017/18 2016/17 2017/18 2016/17
Personnel expenses 50-1 6,141,844 4,904,133 4,393,773 3,597,993
Administrative expenses 50-2 6,382,206 4,883,002 4,863,113 3,630,582
12,524,050 9,787,135 9,256,886 7,228,575
50- GENERAL AND ADMINISTRATIVE EXPENSES
50-1- Personnel expenses
50-1-1- The increase in personnel costs is related to the annual increase in salary and benefits based on the
approval of the Supreme Council of Labor and the Bank's management decisions over the previous fiscal year.
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2017/18 2016/17 2017/18 2016/17
Rent 181,718 144,928 138,681 110,267
Publication and advertisement 913,597 712,734 803,146 630,729
Education and research 40,401 28,928 23,532 22,173
Telecommunication 93,126 81,242 81,774 68,025
insurance 8,374 9,043 8,318 8,942
Audit and consultant's fee 206,835 263,693 81,479 71,070
Commuting 110,380 97,793 78,619 68,080
Utilities 99,732 96,833 82,223 79,932
Repair and maintenance of fixed & tangible assets 1,535,143 1,238,074 1,466,639 1,221,173
Office supplies 150,014 134,210 96,045 76,855
membership fees in Deposit Guarantee Fund 0 0 727,678 300,000
Board of directors bonus 0 0 0 3,096
Attendance fees for non-executive board of directors 0 0 806 370
hospitality 129,354 132,329 84,346 87,951
Contractual services 592,995 463,079 385,615 332,462
Notary and government charges 151,675 29,152 132,766 20,664
Physical education 15,741 25,002 15,741 14,734
Subscription fees 744,114 306,628 7,063 3,915
Workplace security 58,275 49,757 58,275 49,757
Sponsorship of social and cultural activities 208,526 91,556 208,526 91,556
Repair and maintenance of buildings 80,277 124,822 78,699 67,934
Clothing costs 48,804 25,862 48,804 24,577
healthcare 3,113 1,762 1,681 1,128
Depositors' insurance 368,328 298,409 248,754 255,487
Amortisation of goodwill 128,341 149,243 0 0
Other 513,343 377,923 3,903 19,705
Total 6,382,206 4,883,002 4,863,113 3,630,582
50-2- Administrative Expenses
Group Bank
Note 2017/18 2016/17 2017/18 2016/17
Specific provision of doubtful debts 51-1 14,472,104 9,252,071 14,472,104 9,252,071
General provision of doubtful debts 51-2 1,113,177 1,318,561 2,050,149 1,876,129
15,585,281 10,570,632 16,522,253 11,128,200
51- DOUBTFUL DEBTS EXPENSES
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51-1- Specific expenses for doubtful debts
2017/18 2016/17
overdue Bad debt Doubtful debt Total Total
Balance 4,326,171 6,744,788 15,873,636 26,944,595 22,341,649
Less: The value of collaterals by applying coefficients:
Deposits and participation bonds (66,494) (92,130) (128,312) (286,936) (270,606)
Real estate (1,242,561) (1,721,609) (2,397,736) (5,361,906) (5,056,743)
L/Gs (575) (796) (1,109) (2,480) (2,339)
Machinery (7,950) (11,015) (15,341) (34,306) (32,353)
(1,317,580) (1,825,550) (2,542,498) (5,685,628) (5,362,041)
Balance (basis for calculating specific provision) 3,008,591 4,919,238 13,331,138 21,258,967 16,979,608
Coefficient 10 20 50 or 100
Specific provision of doubtful debts 300,859 983,847 33,623,285 34,907,991 20,472,551
Specific provision for forbearance and renewal debts 0 0 0 0 0
Specific provision of doubtful debts at the beginning of the period (156,262) (635,073) (19,681,215) (20,472,550) (11,248,919)
Written off debts 0 0 36,663 36,663 28,439
Specific expenses for doubtful debts 144,597 348,774 13,978,733 14,472,104 9,252,071
51-2- General expenses for doubtful debts
2017/18 2016/17
Credit facility to other banks and financial institutions 10,860,000 0
dues from government 0 0
Credit facility to governmental entities 0 2,596,136
Credit facility to non-governmental entities 633,430,508 489,554,831
Customer debt for Term L/C after deduction of advances received 43,235,215 25,810,541
Due from subsidiaries and associates 2,084,069 984,406
Other accounts receivable 3,329,891 2,105,948
Less:
Balance of credit facilities for which specific provision is calculated (26,944,594) (22,341,649)
Balance (basis for calculating general provision) 665,995,089 498,710,213
Coefficient (min 1.5%) 1.5% 1.5%
General provision of doubtful debts 9,339,106 7,288,957
Less: General provision of doubtful debts at the biginning of the period (7,288,957) (5,412,828)
General expenses for doubtful debts 2,050,149 1,876,129
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52- FINANCIAL COST
Group Bank
2017/18 2016/17 2017/18 2016/17
Profit of credit facilities received from other banks and financial institutions 711,703 790,242 0 536,938
Profit and late payment penalties on credit facilities received from central bank 0 0 0 0
Late payment penalties paid 0 0 0 0
Financial cost of debt securities 0 0 0 0Late payment penalties of overdraft from Central bank's current account 135,736 1,961,990 135,736 1,961,990
847,439 2,752,232 135,736 2,498,928
54- NET OTHER INCOME & EXPENSES
55- PRIOIR YEAR ADJUSTMENTS
53- DEPRECIATION EXPENSES
Group Bank
2017/18 2016/17 2017/18 2016/17
Depreciation of fixed tangible assets 555,633 579,167 378,080 415,365
Amortisation of intangible assets 207,068 124,601 206,063 124,171
762,701 703,768 584,143 539,536
Group Bank
Note 2017/18 2016/17 2017/18 2016/17
Correction of errors 55-1 1,938,871 631,191 7,796 339,632
1,938,871 631,191 7,796 339,632
Group
Note 2017/18 2016/17
Net non-operating other income/(expenses) 2,075,475 662,798
Net operating other income/(expenses) 54-1 (9,907,062) (14,297,678)
(7,831,587) (13,634,880)
54-1- The main part of this amount is related to Pasargad Insurance Co. for reinsurance fees and commis-
sion expenses.
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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55-1- In order to provide an appropriate picture of the financial position and results of operations, some com-
parative items of the comparative financial statements have been corrected and restated which is why some
comparative items do not match the financial statements presented in the previous financial year.
56-1- GROUP'S NET PROFIT/ (LOSS)
56- NET CASH GENERATED FROM OPERATING ACTIVITIES
Group
2017/18 2016/17
Net profit/(loss) 4,526,525 (7,564,411)
Depreciation 762,701 703,769
Net increase/(decrease) in provision for employees retirement benefits
344,665 338,206
Net increase/(decrease) financial cost payable 1,904,793 65,487
Net increase/(decrease) income tax payable 197,097 129,921
(Gain)/loss on disposal of properties, fixed & intangible assets (53,016) (74,256)
Net (gain)/loss from foreign currency conversion (13,830,359) 663,143
Doubtful debts expenses 15,585,281 10,570,632
9,437,687 4,832,491
Net increase/(decrease) in operating liabilities:
dues to Central bank, banks and other financial institutions 347,583 9,638,977
Customers deposit 14,308,507 2,589,905
Operating portion of provisions and other liabilities 65,347,907 22,702,702
Term deposits 132,430,737 68,499,860
Advances Received 760,155 (969,802)
Operational Accounts Payable 2,339,527 (26,215,448)
Profit of term deposits payable (2,867,604) 1,829,211
212,666,812 78,075,405
Net (increase)/decrease in operating assets:
dues from banks and other financial institutions (11,874,722) 4,375,095
Credit facilities & dues from non-governmental entities (104,956,701) (128,408,236)
Investments in shares and other securities (1,418,786) (15,180,179)
Other accounts receivable (14,945,756) (6,441,646)
Prepayments and Orders 131,126 3,257,850
legal deposit (11,017,358) (4,009,697)
Operating portion of other assets (22,522,202) 1,017,695
(166,604,399) (145,389,118)
55,500,100 (62,481,222)
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56-2- NET PROFIT/(LOSS) GENERATED FROM OPERATING ACTIVITIES
Group
2017/18 2016/17
Net profit/(loss) 2,340,624 (6,498,210)
Depreciation 584,143 539,536
Net increase/(decrease) in provision for employees retirement benefits
189,937 226,899
Net increase/(decrease) financial cost payable 2,363,192 0
Net increase/(decrease) income tax payable 0 0
(Gain)/loss on disposal of properties, fixed & intangible assets (53,016) (74,256)
Net (gain)/loss from foreign currency conversion (13,830,359) 663,143
Doubtful debts expenses 16,522,253 11,128,200
8,116,774 5,985,312
Net increase/(decrease) in operating liabilities: Amounts dues to Central bank, banks and other financial institutions
347,583 9,638,977
Customers deposit 14,364,399 2,656,708
Operating portion of provisions and other liabilities 48,930,083 17,673,465
Term deposits 137,469,999 70,094,215
Profit of term deposits payable (2,867,604) 1,822,497
198,244,460 101,885,862
Net (increase)/decrease in operating assets:
dues from banks and other financial institutions (11,874,722) 4,375,095
Credit facilities & dues from governmental entities 2,557,194 (2,557,194)
Credit facilities & dues from non-governmental entities (143,873,398) (129,742,709)
Investments in shares and other securities 101,287 856,948
dues from subsidiaries and associates (1,099,663) 20,013,425
Other accounts receivable (1,223,943) 95,686
legal deposit (11,017,358) (4,009,697)
Operating portion of other assets (22,148,508) 150,904
(188,579,111) (110,817,542)
17,782,123 (2,946,368)
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140 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
57- NON-CASH TRANSACTIONS
Group Bank
Note 2017/18 2016/17 2017/18 2016/17
Confiscated collateral assets 57-1 26,511,928 2,197,061 5,713,610 2,197,061
Capital increase from shareholders' due 1,248,160 10,506,286 0 0
27,760,088 12,703,347 5,713,610 2,197,061
57-1- confiscated collateral assets during the financial year:
Type of confiscated asset Customer relationship Expert value of confiscated assets
Residential property Unrelated customers 3,888,810
Commercial/administrative property Unrelated customers 770,602
Shares Unrelated customers 159,130
Participation bonds Unrelated customers 0
Factory equipment Unrelated customers 97,309
Land Unrelated customers 797,509
goods Unrelated customers 0
Furniture Unrelated customers 0
vehicles Unrelated customers 250
5,713,610
58-1- Commitments for L/Cs:
58- OFF BALANCE SHEET ITEMS
Note 2017/18 2016/17
Commitments for L/Cs (foreign currency) 107,134,216 76,530,112
Commitments for L/Cs (IRR) 58-1-1 1,076,325 169,671
108,210,541 76,699,783
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58-4- Managed funds:
58-1-1- Bank's commitments for L/Cs (IRR):
2017/18 2016/17
Opening balance 169,670 69,927
Issued during the year 1,888,661 559,174
Paid (canceled) during the year (982,006) (459,430)
Closing balance 1,076,325 169,671
58-3- Other commitments:2017/18 2016/17
Commitments for guarantee of participation bond and other securities
39,274 26,689
Commitments for credit cards 293,328 247,290
332,602 273,979
2017/18 2016/17
Not used managed funds 744 744
744 744
58-2- Commitments for L/Gs:
2017/18 2016/17
Foreign currency IRRm Foreign currency IRRm
Foreign currency commitments:
EUR 199,650,320 11,615,456 223,755,702 7,798,110
AED 8,711,470 114,146 6,813,084 60,139
USD 8,805,881 420,269 4,283,332 138,866
JPY 25,572,240 11,559 333,782,730 96,036
CNY 153,435,651 1,162,889 236,226,970 1,110,739
KRW 10,977,376,371 486,847 14,712,131,892 422,238
GBP 59,264 4,038 0
TRY 69,743,593 885,255 0
14,700,459 9,626,128
IRR commitments:
IRR 38,258,066 33,631,299
52,958,525 43,257,427
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142 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
58-5- Commitments for L/Cs and L/Gs by the type of collateral:
2017/18 2016/17
Term deposits 696,549 518,437
Participation bonds and shares 7,445 5,541
Documents, affidavits and commitment letters 5,361,964 3,990,879
Land, building and equipment 1,234,878 919,113
checks and promissory notes 153,868,232 114,523,240
161,169,066 119,957,210
59- CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS
Group Bank
2017/18 2016/17 2017/18 2016/17
Branch buildings 174,486 223,597 174,486 223,597 Asset acquisition in return for credit facilities received 20,798,318 0 0 0
Guarantee documents on Bank's account 6,694,679 10,264,940 0 0
Bank L/Gs 69,450 825,828 0 0
Other guarantees 125,031 1,478,079 0 0
27,861,964 12,792,444 174,486 223,597
59-1- Capital commitment raised from contracts ratified at STP date described as below:
60- EARNINGS PER SHARE
Basic earning per share is calculated by dividing profit attributable to ordinary shareholders to weighted
average number of ordinary shares. Weighted average number of ordinary shares is 50,400,000,000.
61- EVENTS AFTER THE REPORTING PERIOD
There is no event to be disclosed between the balance sheet date and the date of confirmation of the
financial statements (according to the fifth section of supervising requirements on Minimum Standards of
Transparency and Disclosure of Information in Financial Institutions).
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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Receivables Other receivables Total
Balance at the beginning of the period 28,439 0 28,439
Witten off during the period 36,663 0 36,663
Collected during the period 0 0 0
Balance at the end of the period 65,102 0 65,102
Related parties Non-related parties Total
Balance at the beginning of the period 0 28,439 28,439
Witten off during the period 0 36,663 36,663
Collected during the period 0 0 0
Balance at the end of the period 0 65,102 65,102
Transactional contract Participating contract Total
Balance at the beginning of the period 892 27,547 28,439
Witten off during the period 550 36,113 36,663
Collected during the period 0 0 0
Balance at the end of the period 1,442 63,660 65,102
62- Written off receivables
62-1 Written off recivables categorised by type of receivables
62-2 written off recivables categorised by type of credit facility
62-3 written off recivables categorised by type of debtors
62-4 written off credit facilities categorised by type of contract
Governmental Non-governmental
Imposed Non-imposed Total Imposed Non-imposed Total Total
Balance at the beginning of the period 0 0 0 0 28,439 28,439 28,439
Witten off during the period 0 0 0 0 36,663 36,663 36,663
Collected during the period 0 0 0 0 0 0 0
Balance at the end of the period 0 0 0 0 65,102 65,102 65,102
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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62-5 Written off credit facilities categorised by type of debt
62-6 Allocated provision for written off receivables during the period
63-BANK RISKS DESCRIPTION
Bank is exposed to different risks as follows:
» Credit risk
» Liquidity risk
» Market risk
» Operational risk
63-1- The relation between Bank's different business lines and major risks:
Principal Profit Penalty Legal fee Total
Balance at the beginning of the period 28,389 50 0 0 28,439
Witten off during the period 36,651 12 0 0 36,663
Collected during the period 0 0 0 0 0
Balance at the end of the period 65,040 62 0 0 65,102
2017/18 2016/17
IRRm IRRm
Balance at the beginning of the period 0 0
Write off expense during the period 0 0
Total 0 0
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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Bank Pasargad
Corporate Banking
Credit Risk : Low
Market Risk : Low
Liquidity Risk : Low
Operational Risk : MediumOperational Risk: Medium
Liquidity Risk: Low
Market Risk: Medium
Credit Risk : Medium
Retail Banking
63-2- Framework and structure of Bank risk management
Approved structure of risk management department includes 6 experts (in IT, finance, legal, foreign ex-
change, credit, system analysis areas) that is supervised by deputy CEO of banking and economic studies.
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
146 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
Risk Management Supreme committee
Strategic Risk
Board of Directors
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> Reputation Risk
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63-3- Credit Risk
63-3-1- Definition: The potential that a bank borrower will fail to meet its obligations (principal and profit)
due to inability or unwillingness to repay. Credit Risk can also be defined as probability that part of credit
portfolio of a financial intermediary becoming past due or bad debt or irrecoverable debt due to internal fac-
tors (eg. inappropriate credit scoring procedures and inadequate supervision on facilities) or external factors
(eg. economic recession, crisis, ...). The quality of resource allocation among different activities, credit wor-
thiness assessment and taking appropriate collaterals are effective in controlling this risk.
63-3-2- Credit Policies: Credit policies are prepared by credit policy committee annually and notified to all
related departments. The policies insist on granting credit facilities according to regulations issued by CBI
and in order to mitigate credit risk, identify profit rates, contract types, authority limits, acceptable Collateral,
terms and time of repayment.
63-3-3- Executive departments for credit risk management: In addition to Board of directors and senior
executives committee, Risk Management, Credit affairs, branches affairs Departments and all branches are
involved in credit risk management.
63-3-5- Credit risk mitigation techniques
Bank Pasargad tries to mitigate credit risk in the following ways:
» Using Internal credit scoring system
» Determining credit limits for different decision-making bodies
» Utilizing CBI Inquiry system (to control customer history of dishonored checks and non-performing
credit facilities)
» Proactive actions in credit facilities collection
» Acceptance of highly liquid collateral
» Incentivizing employees for credit facilities collection
» Issuing early warnings, manuals and instructions through credit affairs, internal audit and inspection
departments
» Employing official experts of the judiciary for collateral appraisal
Also risk management reports are discussed in supreme risk management committee on a monthly basis
and recommendations are submitted to the board of directors.
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148 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
63-3-6- Creditworthiness assessment process
when customers ask for credit facilty, the branch requires them to give the primary documents such as
identification information, business certificates and financial statements. Then the branch asks credit de-
partment for credit worthiness assessment. Credit department staff go to customer's workplace and pre-
pare a report and send the result to the branch. The branch assesses the credit worthiness of the customer
regarding the ducuments, enquiries and the report.
63-3-7- Approving credit requests in Bank according to their conditions are delegated to different credit
decision making levels. Then the branches after primary investigations in compliance with rules and regula-
tions send the request for the right level of decision making bodies in the Bank. Authority limits of different
organizational levels to approve credit facilities and commitments are as follows:
Collaterals Against urban marketable propertiesAgainst promissory note with
creditable guarantors and checks derived from commercial transacti
Against promissory note with creditable guarantors
Credit Facilitiy type Credit facility L/G Credit facility L/G Credit facility L/G
Cust
omer
ty
pe
Indi
vidua
l
Lega
l en
tity
Indi
vidua
l
Lega
l en
tity
Indi
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l
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l en
tity
Indi
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l
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l en
tity
Indi
vidua
l
Lega
l en
tity
Indi
vidua
l
Lega
l en
tity
Tehran province branch affairs departments committee
30,000 80,000 200,000 300,000 10,000 20,000 75,000 150,000 7,500 15,000 60,000 120,000
Other provinces credit committee 7,000 15,000 60,000 160,000 2,000 4,000 37,500 75,000 1,500 3,000 22,500 45,000
Privileged branches credit committee 5,000 10,000 60,000 160,000 0 0 37,500 75,000 0 0 22,500 45,000
class 1 branches credit committee 4,000 8,000 40,000 120,000 0 0 22,500 45,000 0 0 15,000 30,000
class 2 branches credit committee 3,000 6,000 30,000 80,000 0 0 15,000 30,000 0 0 12,000 22,500
Class 3 & newly stablished branches credit committee
2,000 3,000 20,000 60,000 0 0 7,500 22,500 0 0 7,500 15,000
Sight L/C Deferred and refinance L/C
Description
Indi
vidua
l
Lega
l en
tity
Indi
vidua
l
Lega
l en
tity
Tehran province branch affairs departments
75,000 150,000 30,000 90,000
Other provinces credit committee 30,000 70,000 15,000 40,000
Privileged branches credit committee 20,000 40,000 10,000 20,000
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Amounts in IRRm
63-3-7-1- Quality analysis of credit facilities, commitments and investments according to internal credit rating
63-3-7-2- Quality analysis of credit facilities and commitments according to asset class:
63-3-7-3-Credit quality of Participation bonds Islamic Treasury bill, sukuk, investment fund units, etc.
* Investments include any kind of equity securities such as shares.
Credit Facilities Investments* L/G & L/C commitments
2017/18 2016/17 2017/18 2016/17 2017/18 2016/17
1-Low risk 606,485,915 467,213,184 16,268,708 16,359,156 161,169,066 119,957,210
2-Medium risk 11,070,957 7,916,829 377,554 388,393 0 0
3-High risk 15,873,636 14,424,819 0 0 0 0
Total gross amount 633,430,508 489,554,832 16,646,262 16,747,549 161,169,066 119,957,210
provision of doubtful debts (44,247,097) (27,722,566) 0 0 0 0
Net book value 589,183,411 461,832,266 16,646,262 16,747,549 161,169,066 119,957,210
Credit Facilities L/G & L/C commitments
2017/18 2016/17 2017/18 2016/17
Current debts 606,485,914 467,213,184 161,169,066 119,957,210
Overdue debts 4,326,170 3,115,665 0 0
Bad debts 6,744,788 4,801,164 0 0
Doubtful debts 15,873,636 14,424,819 0 0
633,430,508 489,554,832 161,169,066 119,957,210
provision of doubtful debts (44,247,097) (27,722,566) 0 0
Net book value 589,183,411 461,832,266 161,169,066 119,957,210
Credit quality analysis
2017/18 2016/17
Issued by Government and CBI:
projects 0 0
corporates 0 0
0 0
Government security
projects 0 0
corporates 0 0
0 0
Issued by Non-governmental sector
projects 0 0
corporates 0 0
0 0
0 0
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63-3-7-4- Type and value of collateral of credit customers
* stated amounts are pledged values based on Bank experts reports.
Collateral type 2017/18 2016/17
Credit facilities to individuals:
Cash 0 0
Participation bonds, shares and deposits 16,934,730 1,704,033
Marketable shares 0 0
Unlisted shares 0 0
Land, building & machinery 36,277,160 2,969,515
Plant & equipment 0 0
L/Gs 12,201,212 1,206,791
Checks & promissory notes 33,494,377 25,886,555
Binding contracts 3,336,399 2,308,466
Others 0 0
Credit facilities to legal entities:
Cash 0 0
Participation bonds, shares and deposits 205,891,868 20,717,578
Marketable shares 0 0
Unlisted shares 0 0
Land, building & machinery 333,925,645 27,333,929
Plant & equipment 0 0
L/Gs 206,572,103 20,431,532
Checks & promissory notes 445,252,402 344,118,987
Binding contracts 61,970,284 42,877,446
Others 0 0
1,355,856,180 489,554,832
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63-3-7-5- Balance of credit facilities (provision deducted) to updated fair value of collateral
63-3-8- Credit risk concentration
63-3-8-1- Sectoral credit facilities and investments distribution and domestic/foreign concentration
* All credit facilities are granted in Iran.
2017/18 2016/17
Credit facilities to banks:
50% or less 0 0
51%-70% 0 0
71%-90% 0 0
91%-100% 0 0
more than 100% 0 0
Credit facilities to individuals:
50% or less 17,799,689 31,152,707
51%-70% 2,048,085 3,584,523
71%-90% 4,421,335 7,738,144
91%-100% 587,548 1,028,316
more than 100% 619,914 1,084,963
Credit facilities to legal entities:
50% or less 424,763,462 310,887,655
51%-70% 48,872,667 35,770,282
71%-90% 105,504,610 77,219,638
91%-100% 14,020,426 10,261,658
more than 100% 14,792,772 10,826,946
633,430,508 489,554,832
Note Credit Facilities Investments* L/G & L/C commitments
2017/18 2016/17 2017/18 2016/17 2017/18 2016/17
Book value
Credit facilities/commitments categorized by economic sectors:
Manufacturing 59-3-8-1-1 167,371,205 101,380,703 4,509,409 4,574,718 52,968,004 39,423,781
Housing and construction 28,148,237 25,345,176 512,550 448,900 8,600,942 6,401,632
Commerce 129,371,081 123,224,615 0 0 98,999,095 73,684,457
Services 149,074,847 76,035,527 3,331,912 3,789,189 0 0
Agriculture 5,629,647 40,552,281 0 0 261,329 194,506
L/C 88,556,137 65,897,457 0 0 0 0
Insurance 0 0 487,101 432,986 0 0
Automobile 0 0 64,961 54,115 0 0
Investment 0 0 7,740,329 7,447,641 0 0
Other 83,445,074 70,966,491 0 0 339,696 252,834
Total 651,596,228 503,402,250 16,646,262 16,747,549 161,169,066 119,957,210
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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152 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
63-3-8-1-1- Distribution of credit facilities, commitments and investments based on industry type:
2017/18 2016/17
Credit facilities:
Automobile and spare parts 53,285,506 30,414,211
Metal and mine 47,205,487 26,358,983
Petrochemical, chemical and oil products 7,600,024 5,069,035
Food and pharmaceutical 10,640,034 7,096,649
Energy 24,320,077 16,220,912
Contracting 9,120,029 6,082,842
Telecommunication, computer and related industries 3,040,010 2,027,614
Financial intermediaries 8,360,026 5,575,939
Other 3,800,012 2,534,518
167,371,205 101,380,703
Investments:
Automobile and spare parts 10,847 0
Metal and mine 176,707 4,399
Petrochemical, chemical and oil products 53,498 29,773
Food and pharmaceutical 0 766
Energy 0 0
Financial intermediaries 54,703 171,064
Other 27,327 182,387
Engineering and technical services 4,186,327 4,186,329
4,509,409 4,574,718
Commitments:
Automobile and spare parts 10,593,601 7,884,756
Metal and mine 2,869,799 2,135,975
Petrochemical, chemical and oil products 19,376,763 14,422,013
Food and pharmaceutical 3,178,080 2,365,427
Energy 4,237,440 3,153,902
Contracting 7,945,201 5,913,567
Telecommunication, computer and related industries 1,059,360 788,476
Financial intermediaries 2,118,720 1,576,951
Other 1,589,040 1,182,714
52,968,004 39,423,781
Total 224,848,618 145,379,202
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63-3-8-2- Distribution of credit facilities based on trasactional and participating contracts and customer
type:
63-3-9- Non-performing credit facilities management
Bank Pasargad tries its best to accept just valuable and marketable collaterals in order to take a proactive
approach regarding non-performing loans. Policies about decreasing and dealing with non-performing credit
facilities are advised by credit department. In case a credit facility becomes non-performing, primary actions
take place in branches. If the actions are unsuccessful the profile goes to credit department for more follow
up actions where some more negotiations happen. If the debt is not collected yet the legal affairs department
takes legal proceedings to collect it.
63-3-9-1- Movement in non-performing credit facilities:
Credit facilities during the period Balance at the end of the period
Description Amount Share of total (%) Amount Share of total(%)
Transactional contractsIndividual 4,831,494 0.73 5,782,011 0.91
Legal entity 115,295,173 17.34 137,977,611 21.78
Participating contractsIndividual 21,914,305 3.3 19,694,561 3.11
Legal entity 522,946,639 78.63 469,976,325 74.20
Total 664,987,611 100 633,430,508 100
2017/18 2016/17
principal Profit penalty total principal profit penalty total
Balance of non-performing credit facilities at the beginning of the year
22,341,649 0 0 22,341,649 20,023,577 0 0 20,023,577
Transferred to non-performing credit facilities during the year
34,272,215 0 0 34,272,215 24,654,509 0 0 24,654,509
Non-performing credit facilities settled during the year
Cash collection (23,955,660) 0 0 (23,955,660) (20,139,376) 0 0 (20,139,376)
collected via confiscation of collaterals (5,713,610) 0 0 (5,713,610) (2,197,061) 0 0 (2,197,061)
setteled by new credit facility 0 0 0 0 0 0 0 0
Restructured 0 0 0 0 0 0 0 0
Written off 0 0 0 0 0 0 0 0
Debt transfer 0 0 0 0 0 0 0 0
Late payment penalty relief 0 0 0 0 0 0 0 0
Balance of non-performing credit facilities at the end of the year
26,944,594 0 0 26,944,594 22,341,649 0 0 22,341,649
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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154 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
63-3-9-2- Distribution of non-performing credit facilities based on economy sector:
Balance of non-performing credit facilities
Specific provision of doubtful debts
Net non-performing credit facilities
2017/18 2016/17 2017/18 2016/17 2017/18 2016/17
Manufacturing 11,337,869 8,042,993 14,688,743 7,370,118 (3,350,874) 672,875
Housing and construction 988,622 1,117,082 1,280,806 1,023,627 (292,184) 93,455
Commerce 7,765,350 5,585,412 10,060,377 5,118,138 (2,295,027) 467,274
Service 4,767,947 4,915,163 6,177,100 4,503,961 (1,409,153) 411,202
Agriculture 212,054 111,708 274,726 102,363 (62,672) 9,345
L/C 632,334 632,334 819,218 579,433 (186,884) 52,901
Other 1,240,418 1,936,957 1,607,021 1,774,911 (366,603) 162,046
Total 26,944,594 22,341,649 34,907,991 20,472,551 (7,963,397) 1,869,098
60-3-9-3- Balance of confiscated assets:
63-3-10- Minimum capital required for credit risk coverage:
Required capital to cover credit risk of Bank assets is IRRM 45,259,411 . The calculation is presented in
Note 63-3-10-1.
2017/18 2016/17
Movable assets 1,144 894
Residential properties 8,634,052 5,544,028
Commercial properties 1,269,913 512,263
Plant & equipment 97,309 9,951
Investments 2,140,445 1,981,315
Debt securities 0 0
Land 1,393,386 677,556
13,536,249 8,726,007
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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63-4- Liquidity risk
63-4-1- Liquidity risk definition
Liquidity risk is the risk of liqudity defiecit in order to meet short term commitments and unexpected cashout-
flows in bank. It results from inability of a bank in settllement and reducing its debts or absorbing resources
in order to increase assets. In case of insufficient cash a bank can not fund the essential resources from
increasing debts or converting assets into cash. This will affect bank's profitability. In Crisis cash deficit can
even lead to insolvency of bank. In fact inability of a bank in meeting its commitments to others on their due
date is called liquidity risk. It mainly stems from banks' assets and liabilities structure.
63-4-2- Policies and guidelines for liquidity risk management
Bank Pasargad's general approach is to prevent from being exposed to liquidity risk through monitoring of
asset-liability structure and special attention towards liquid assets and daily monitoring of net cash inflows
and outflows and financing of deficiet.
63-4-3- Executive departments of liquidity risk management
Liquidity management at Bank Pasargad is done in Financial Affairs Department on a daily basis. The report
of liquidity risk indicators is prepared by Risk Management Department and is submited to the risk manage-
ment supreme committee for decision making. Any decisions to change liquidity risk management policies
are recommended to the the board of directors in appropriate times and will be executed after approval.
63-3-10-1- Calculation of minimum capital required for credit risk coverage:
2017/18
Asset type Assets and commitments Risk coefficient Risk weighted asset Allocated Capital
dues from banks and other financial institutions 23,907,158 20% 4,781,432 1,285,419
Investment in shares 16,646,262 100% 16,646,262 895,022
Accounts receivable 3,329,891 100% 3,329,891 179,039
Mortgages and hire-purchase facilities 35,172,183 50% 17,586,092 1,891,107
Other credit facilities & receivables 554,011,228 100% 554,011,228 29,787,590
Other assetss 58,006,948 100% 58,006,948 3,118,867
Commitments for L/Gs (conversion factor: 20%) 48,395,635 50% 24,197,818 2,602,094
Commitments for L/Cs (conversion factor: 20%) 102,298,079 50% 51,149,040 5,500,273
Total 841,767,384 729,708,709 45,259,411
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BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
156 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
63-4-4- Liquidity risk measurement
Stress testing (every 6 months)
* Monitoring indices:
Liquid asset coverage by short-term liabilities
» Liquid asset coverage by short-term liabilities
» Net credit facilities to total deposits
» Liquidity ratio
» Cash ratio
» Investment coverage ratio
63-4-5- Control and monitoring of liquidity risk
Bank Pasargad controls liquidity risk by the means such as maintaining some cash as percentage of total
deposits and debts, IRR interbank market, purchasing other banks' participation papers, etc.
63-4-5-1- Liquidity reserves composition
63-4-5-2- Liquidity ratios table
* Cash and cash equivalents include cash, participation papers and similar securities, which have active trading
markets.
* Net liquid assets include cash and cash equivalents, investment papers which have active trading markets
excluding other banks' deposits, issued debt securities, other debts and commitments which will be due within
one month.
* Less stable deposits are those deposits without any certain maturity date such as current account and Qard-
al-hasan saving deposits.
2017/18 2016/17
Deposits with CBI 9,349,152 7,404,736
Cash and Deposit with other banks 88,506,434 50,844,133
97,855,586 58,248,869
b/f Average Max Min c/f
Cash & cash equivalents to total assets 7.11 7.89 9.25 6.94 8.68
Cash & cash equivalents to total deposits 9.48 10.53 12.03 9.21 11.57
Net liquid asset to total deposits 0.7 0.85 1.12 0.68 1
Credit facilities to total deposits 95.29 93.74 100.74 86.74 92.18
Credit facilities to one-year deposits or more 175.15 153.01 180.45 127.31 130.87
Less stable deposits to total deposits 4.63 5.21 5.98 4.35 5.78
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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63-4-5-3- Current assets and liabilities maturity analysis:
2017/18
less than 1 month
1 to 3 months
3 months to one year
one to five years
more than five years
Without Certain
maturity
Assets
Cash 73,948,428 0 0 0 0 0dues from banks and other financial institutions 23,907,158 0 0 0 0 0
dues from government 0 0 0 0 0 0
Credit facilities and dues from govermental entities 0 0 0 0 0 0
Credit facilities and dues from non-govermental entities 115,153,153 150,512,581 172,991,260 109,963,125 40,563,292 0
Investment in shares and other securities 16,646,262 0 0 0 0 0
Receivable from subsidiaries and associates 2,084,069 0 0 0 0 0
Other accounts receivable 3,329,891 0 0 0 0 0
Tangible fixed assets 0 0 0 0 12,086,368 0
Intangible assets 0 0 0 0 8,669,925 0
legal deposit 64,315,225 0 0 0 0 0
Other assets 0 0 0 0 58,006,948 0
299,384,186 150,512,581 172,991,260 109,963,125 119,326,533 0
Liabilitiesdues to banks and other financial institutions 38,563,382 0 0 0 0 0
Customers deposit 36,945,383 0 0 0 0 0
Dividend payable 165,040 0 0 0 0 0
Profit payable on term deposits 7,417,588 0 0 0 0 0
Corporate tax provision 416,741 0 0 0 0 0
Provisions and other debts 103,634,640 0 0 0 0 0Provision for employees retirement benefits 981,299 0 0 0 0 0
Term deposits 64,907,471 109,915,276 271,005,806 60,712,654 95,685,287 0
Total liabilities 253,031,544 109,915,276 271,005,806 60,712,654 95,685,287 0
Total equity 0 0 0 0 61,827,118 0
Total liabilities and equity 253,031,544 109,915,276 271,005,806 60,712,654 157,512,405 0
Gap 46,352,642 40,597,305 (98,014,546) 49,250,471 (38,185,872) 0
Accumulated gap 46,352,642 86,949,947 (11,064,599) 38,185,872 0 0
Gap to capital base ratio 89% 78% -188% 94% -73% 0
Accumulated gap to capital base ratio 89% 166% -21% 73% 0% 0Ratio of gap to capital base basis for other contingency 64% 56% -135% 68% -53% 0
Ratio of accumulated gap to capital base basis for other contingency 64% 120% -15% 53% 0% 0
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158 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
63-4-5-3- Current assets and liabilities maturity analysis:
The following table shows maturity of assets and liabilities of bank based on the probability of being paid back.
2016/17
less than 1 month
1 to 3 months
3 months to one year
one to five years
more than five years
Without Certain
maturity
Assets
Cash 46,216,433 0 0 0 0 0
dues from banks and other financial institutions 12,032,436 0 0 0 0 0
dues from government 0 0 0 0 0 0
Credit facilities and dues from govermental entities 2,557,194 0 0 0 0 0
Credit facilities and dues from non-govermental entities 56,852,939 73,188,056 184,438,128 75,437,128 71,916,015 0
Investment in shares and securities 16,747,549 0 0 0 0 0
Receivable from subsidiaries and associates 984,406 0 0 0 0 0
Other accounts receivable 2,105,948 0 0 0 0 0
Tangible fixed assets 0 0 0 0 12,020,088 0
Intangible assets 0 0 0 0 6,246,723 0
legal deposit 53,297,867 0 0 0 0 0
Other assets 0 0 0 0 35,858,440 0
190,794,772 73,188,056 184,438,128 75,437,128 126,041,266 0
Liabilities 0 0 0 0 0 0
dues to banks and other financial institutions 38,215,799 0 0 0 0 0
Customers deposit 22,580,984 0 0 0 0 0
Dividend payable 1,024,921 0 0 0 0 0
Debt securities 0 0 0 0 0 0
Corporate tax provision 504,715 0 0 0 0 0
Provisions and other debts 52,245,593 0 0 0 0 0
Provision for employees retirement benefits 791,362 0 0 0 0 0
Term deposits 65,179,940 57,190,195 185,809,432 89,456,142 77,405,977 0
Total liabilities 180,543,314 57,190,195 185,809,432 89,456,142 77,405,977 0
Total equity 0 0 0 0 59,494,290 0
Total liabilities and equity 180,543,314 57,190,195 185,809,432 89,456,142 136,900,267 0
Gap 10,251,458 15,997,861 (1,371,304) (14,019,014) (10,859,001) 0
Accumulated gap 10,251,458 26,249,319 24,878,015 10,859,001 0 0
Gap to capital base ratio 20% 32% -3% -28% -21% 0
Accumulated gap to capital base ratio 20% 52% 49% 21% 0% 0
Gap to effective capital base ratio 14% 22% -2% -19% -15% 0
Accumulated gap to effective capital base ratio 14% 36% 34% 15% 0% 0
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63-4-5-4- Analysis of contractual maturity of financial liabilities
63-4-5-4-1- The following table shows the contractural maturity of financial liabilities according to the maturity
mentioned in contract.
2017/18
less than 1 month 1 to 3 months 3 months to
one yearone to five
yearsmore than five years
Without Certain
maturity
Liabilities:dues to banks and other financial institutions 38,563,382 0 0 0 0 0
Customers deposit 36,945,383 0 0 0 0 0
Debt securities 0 0 0 0 0 0
Credit facilities received from National Development fund 47,997,334 0 0 0 0 0
Term deposits 64,907,471 109,915,276 271,005,806 60,712,654 95,685,287 0
188,413,570 109,915,276 271,005,806 60,712,654 95,685,287 0
2016/17
less than 1 month 1 to 3 months 3 months to
one yearone to five
yearsmore than five years
Without Certain
maturity
Liabilities:dues to banks and other financial institutions 38,215,799 0 0 0 0 0
Customers deposit 22,580,984 0 0 0 0 0
Debt securities 0 0 0 0 0 0Credit facilities received from National Development fund 14,282,103 0 0 0 0 0
Term deposits 65,179,940 57,190,196 185,809,432 89,456,142 77,405,977 0
140,258,826 57,190,196 185,809,432 89,456,142 77,405,977 0
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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160 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
2017/18
Book value less than 1 month
1 to 3 months
3 months to one year
one to five years
more than five years
Without Certain
maturity
Liabilities:dues to banks and other financial institutions 35,121,716 35,121,716 0 0 0 0 0
Customers deposit 0 0 0 0 0 0
Debt securities 0 0 0 0 0 0
credit facilities received from National Development fund 47,997,334 47,997,334 0 0 0 0 0
Term deposits 67,359,623 67,359,623 0 0 0 0 0
150,478,673 150,478,673 0 0 0 0 0
2016/17
Book value less than 1 month
1 to 3 months
3 months to one year
one to five years
more than five
years
Without Certain
maturity
Liabilities:dues to banks and other financial institutions 21,988,859 21,988,859 0 0 0 0 0
Customers deposit 0 0 0 0 0 0 0
Debt securities 0 0 0 0 0 0 0credit facilities received from National Development fund 14,282,103 14,282,103 0 0 0 0 0
Term deposits 45,467,032 45,467,032 0 0 0 0 0
81,737,994 81,737,994 0 0 0 0 0
63-4-5-4-1- Analysis of contractual maturity of financial foreign currency liabilities
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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63-5- Market risk
63-5-1- Market risk definition
Market risk or Value at risk , can be defined as probability of risk related to uncertainty of trading portfolio in-
come of a bank resulting from changes in market conditions including market prices, interest rates, marekt and
liquidity volatilities. It exist when financial institution actively trade assets, liabilities and derivitives in market but
not for long term investments purposes.
63-5-2- Executive departments of market Risk
Finance & treasury department and international affairs department with cooperation of economic and banking
studies department manage market risk.
63-5-3- Market risk measurement
"Market risk is measured based on VaR. Bank Pasargad uses one of parametric methods
(variance-covariance) which includes following assumptions to measure market risk:
» Investment return follows normal distribution
» Investment return is time independent.
» Time period of one day is suitable for VaR calculation
» Linear relation exists between market risk factors and asset values."
63-5-4- Value at risk analysis of investments in shares and other investments having active market
It is calculated regarding 10 days probability of expected loss with 99% confidence level as follows.
2017/18 2016/17
Investment type Probable changes in market value (%)
Impact on profit/(loss)
Probable changes in market value (%)
Impact on profit/(loss)
investment in tradable shares (-3.37,+3.37) 153,561 (-3.37,+3.37) 147,092
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162 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
63-5
-5-
VaR
of
fore
ign
exch
ang
e ra
te a
t FY
E 2
017/
18:
BANK
PAS
ARGA
D (P
JSC)
NO
TES
to C
ONSO
LIDA
TED
FINA
NCIA
L ST
ATEM
ENTS
FIN
ANCI
AL Y
EAR
ENDE
D M
ARCH
20,
201
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Notes
USD
EUR
GBP
AED
JPY
SEK
CHF
TRY
CNY
KRW
RUB
OMR
IND
THB
othe
r cu
rrenc
ies
Cash
55,
791,
779
820
,756
,368
4
73,3
87
280
,164
,969
3
,865
,143
,216
2
,221
,187
2
,555
,789
2
5,09
1,43
7 9
70,1
66,3
35
106
,135
,458
,445
1
69,2
46,0
62
100
,658
7
24,8
06,6
94
3,6
25,0
00
0
dues
from
ban
ks an
d ot
her fi
nanc
ial in
stitu
tions
30,
000
00
215
,000
,000
0
00
30,
000,
000
200
,000
,000
0
00
00
0
Cred
it fa
ciliti
es an
d re
ceiva
bles
from
gove
rnm
enta
l enti
ties
00
00
00
00
00
00
00
0
Cred
it fa
ciliti
es an
d re
ceiva
bles
from
non
-gov
ernm
enta
l enti
ties
2,1
42,8
81,6
59
436
,299
,361
0
644
,950
2
19,0
90,0
00
0 3
,361
0
5,0
18,1
13,6
55
4,9
39,5
37,5
32
00
37,
247,
222
00
Inve
stm
ent i
n sh
are
and
othe
r sec
uriti
es0
00
00
00
00
00
00
00
Rece
ivabl
e fro
m su
bsid
iarie
s and
asso
ciate
s0
00
00
00
00
00
00
00
Othe
r rec
eiva
bles
84,
913
17,
027,
297
3
451
0
00
127
,224
0
0 2
,420
0
00
0
Tang
ible
fixe
d as
sets
00
00
00
00
00
00
00
0
Inta
ngib
le as
sets
00
00
00
00
00
00
00
0
lega
l res
erve
00
00
00
00
00
00
00
0
Othe
r ass
ets
00
00
00
00
00
00
00
0
Tota
l for
eign
curre
ncy a
sset
s 2
,198
,788
,351
1
,274
,083
,026
4
73,3
90
495
,810
,369
4
,084
,233
,216
2
,221
,187
2
,559
,150
5
5,21
8,66
1 6
,188
,279
,989
1
11,0
74,9
95,9
77
169
,248
,482
1
00,6
58
762
,053
,916
3
,625
,000
0
Com
mitm
ents
for L
/Cs
0 1
75,9
51,3
22
0 2
,715
,000
6
32,9
47,0
03
00
38,
902,
892
955
,000
,569
1
8,99
1,09
5,08
5 1
40,7
88,4
15
0 4
62,7
52,7
14
00
Com
mitm
ents
for L
/Gs
00
00
00
00
00
00
00
0
Othe
r Cus
tom
ers'
Com
mitm
ents
0 (1
75,9
51,3
22)
0 (2
,715
,000
) (6
32,9
47,0
03)
00
(38,
902,
892)
(955
,000
,569
) (1
8,99
1,09
5,08
5) (1
40,7
88,4
15)
0 (4
62,7
52,7
14)
00
Tota
l for
eign
curre
ncy c
omm
itmen
ts0
00
00
00
00
00
00
00
Tota
l for
eign
curre
ncy c
omm
itmen
ts a
nd a
sset
s 2
,198
,788
,351
1
,274
,083
,026
4
73,3
90
495
,810
,369
4
,084
,233
,216
2
,221
,187
2
,559
,150
5
5,21
8,66
1 6
,188
,279
,989
1
11,0
74,9
95,9
77
169
,248
,482
1
00,6
58
762
,053
,916
3
,625
,000
0
Tota
l for
eign
curre
ncy c
omm
itmen
ts a
nd a
sset
s- IR
R eq
uiva
lent
(IR
Rm)
104
,939
,373
7
4,12
4,87
6 3
2,25
8 6
,496
,603
1
,846
,073
1
3,15
2 1
33,4
37
700
,890
4
6,90
0,97
4 4
,936
,176
1
41,6
92
9,8
67
556
,299
4
,376
0
dues
to b
anks
and
othe
r fina
ncial
insti
tutio
ns (7
,419
,831
) (6
11,6
50,6
58)
0 (8
49,0
94)
00
0 (5
9,34
4,01
8) (2
61,2
66,4
84)
(65,
468,
773,
998)
00
(36,
310,
187)
00
Custo
mer
s dep
osit
(57,
805,
820)
(261
,397
,136
) (8
5,21
5) (9
1,51
3,68
6) (3
38,3
22,3
04)
0 (1
0,83
9) (2
,614
,047
) (5
,336
,127
,457
) (1
5,73
1,66
9,84
5) (7
,566
,792
)0
(97,
142,
863)
00
Divid
end
paya
ble
00
00
00
00
00
00
00
0
Debt
secu
rities
00
00
00
00
00
00
00
0
Corp
orat
e ta
x pro
visio
n0
00
00
00
00
00
00
00
Prov
ision
s and
oth
er d
ebts
(1,0
06,6
03,8
32)
(40,
539,
421)
0 (1
,447
,845
)(0
)0
(1)
(209
,287
) (5
,152
,826
) (4
1,80
0,00
0) (1
3,61
9,00
0)0
(10,
677,
545)
00
Prov
ision
for e
mpl
oyee
s reti
rem
ent b
enefi
ts0
00
00
00
00
00
00
00
Term
dep
osits
(1,0
93,7
33,0
54)
(284
,991
,332
) (3
26,9
74)
(2,9
82,8
92)
00
(24,
523)
00
00
00
00
Tota
l for
eign
curre
ncy l
iabi
lities
(2,1
65,5
62,5
38)
1,1
98,5
78,5
47
(412
,189
) (9
6,79
3,51
7) (3
38,3
22,3
04)
0 (3
5,36
3) (6
2,16
7,35
1) (5
,602
,546
,767
) (8
1,24
2,24
3,84
3) (2
1,18
5,79
2)0
(144
,130
,596
)0
0
Com
mitm
ents
for L
/Cs
0 1
75,9
51,3
22
0 2
,715
,000
6
32,9
47,0
03
00
38,
902,
892
955
,000
,569
1
8,99
1,09
5,08
5 1
40,7
88,4
15
0 4
62,7
52,7
14
00
Com
mitm
ents
for L
/Gs
00
00
00
00
00
00
00
0
Othe
r Cus
tom
ers'
Com
mitm
ents
0 (1
75,9
51,3
22)
0 (2
,715
,000
) (6
32,9
47,0
03)
0 0
(38,
902,
892)
(955
,000
,569
) (1
8,99
1,09
5,08
5) (1
40,7
88,4
15)
0 (4
62,7
52,7
14)
0 0
Tota
l for
eign
curre
ncy c
omm
itmen
ts0
00
00
00
00
00
00
00
Tota
l for
eign
curre
ncy c
omm
itmen
ts a
nd a
sset
s (2
,165
,562
,538
)1,
198,
578,
547
(412
,189
) (9
6,79
3,51
7) (3
38,3
32,3
04)
0 (3
5,36
3) (6
2,16
7,35
1) (5
,602
,546
,767
) (8
1,24
2,24
3,84
3) (2
1,18
5,79
2)0
(144
,130
,596
)0
0
Tota
l for
eign
curre
ncy c
omm
itmen
ts a
nd a
sset
s- IR
R eq
uiva
lent
(IR
Rm)
(103
,353
,638
) (6
9,73
2,10
1) (2
8,08
8) (1
,268
,285
) (1
52,9
26)
0 (1
,844
) (7
89,0
90)
(42,
461,
702)
(3,6
03,0
94)
(17,
711)
0 (1
05,2
15)
00
Net o
f ope
n po
sition
ass
et/(
liabi
lity)
at 2
0 M
arch
201
8 3
3,22
5,81
3 7
5,50
4,47
9 6
1,20
1 3
99,0
16,8
52
2,7
45,9
00,9
12
2,2
21,1
87
2,5
23,7
87
(6,9
48,6
90)
585
,733
,222
2
9,83
2,75
2,13
3 1
48,0
62,6
90
100
,658
6
17,9
23,3
21
3,6
25,0
00
0
Net o
f ope
n po
sition
at 2
0 M
arch
201
8- IR
R eq
uiva
lent
(IRR
m)
1,5
85,7
35
4,3
92,7
75
4,1
70
5,2
28,3
18
1,6
93,1
47
13,
152
131
,593
(8
8,20
0) 4
,439
,272
1
,323
,083
1
23,7
80
9,8
67
451
,084
0
0
NO
P to
capi
tal b
ase
(%)
2.1
9 6
.06
0.0
1 7
.21
2.3
3 0
.02
0.1
8 (0
.12)
6.1
2 1
.82
0.1
7 0
.01
0.6
2 0
0
NO
P to
capi
tal b
ase
base
d on
oth
er co
nting
ency
ratio
s (%
) 2
.60
7.2
2 0
.01
8.5
9 2
.78
0.0
2 0
.22
(0.1
4) 7
.29
2.1
7 0
.20
0.0
2 0
.74
00
BANK
PAS
ARGA
D (P
JSC)
NO
TES
to C
ONSO
LIDA
TED
FINA
NCIA
L ST
ATEM
ENTS
FIN
ANCI
AL Y
EAR
ENDE
D M
ARCH
20,
201
8164 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
63-5
-5-
VaR
of
fore
ign
exch
ang
e ra
te a
t FY
E 2
016/
17:
USD
EUR
GBP
AED
JPY
CHF
TRY
CNY
KRW
RUB
OMR
IND
othe
cu
rrenc
ies
Cash
86,
214,
452
832
,914
,979
1
,541
,336
3
24,5
52,9
70
4,0
05,9
73,2
24
478
,315
6
0,04
8,00
1 9
48,8
67,2
23
81,
285,
746,
514
157
,915
,762
1
00,7
58
958
,831
,961
0
dues
from
ban
ks an
d ot
her fi
nanc
ial in
stitu
tions
0 5
2,20
0,00
0 0
210
,000
,000
0
00
200
,000
,000
0
00
00
Cred
it fa
ciliti
es an
d re
ceiva
bles
from
gove
rnm
enta
l enti
ties
00
00
00
00
00
00
0
Cred
it fa
ciliti
es an
d re
ceiva
bles
from
non
-gov
ernm
enta
l enti
ties
1,5
53,2
13,3
34
231
,741
,401
0
808
,939
4
8,73
4,40
0 3
,361
0
4,9
63,5
58,5
77
5,3
75,2
27,0
61
00
55,
033,
436
0
Inve
stm
ent i
n sh
are
and
othe
r sec
uriti
es0
00
00
00
00
00
00
Rece
ivabl
e fro
m su
bsid
iarie
s and
asso
ciate
s0
00
00
00
00
00
00
Oth
er re
ceiv
able
s 1
01,6
13
43,
979
2,6
05
157
0
0 1
27,2
24
25,
761,
678
0 2
,420
0
00
Tang
ible
fixe
d as
sets
00
00
00
00
00
00
0
Inta
ngib
le a
sset
s0
00
00
00
00
00
00
lega
l res
erve
00
00
00
00
00
00
0
Oth
er a
sset
s0
00
00
00
00
00
00
Tota
l for
eign
cur
renc
y as
sets
1,6
39,5
29,3
98
1,1
16,9
00,3
58
1,5
43,9
41
535
,362
,066
4
,054
,707
,624
4
81,6
76
60,
175,
226
6,1
38,1
87,4
79
86,
660,
973,
576
157
,918
,182
1
00,7
58
1,0
13,8
65,3
97
0
Com
mitm
ents
for L
/Cs
0 9
7,93
7,37
0 0
1,8
41,0
74
567
,448
,501
0
26,
091,
126
268
,932
,232
2
3,07
3,02
3,82
9 4
,895
,000
0
373
,985
,360
0
Com
mitm
ents
for L
/Gs
00
00
00
00
00
00
0
Oth
er C
usto
mer
s' Co
mm
itmen
ts0
(97,
937,
370)
0 (1
,841
,074
) (5
67,4
48,5
01)
0 (2
6,09
1,12
6) (2
68,9
32,2
32)
(23,
073,
023,
829)
(4,8
95,0
00)
0 (3
73,9
85,3
60)
0
Tota
l for
eign
cur
renc
y co
mm
itmen
ts0
00
00
00
00
00
00
Tota
l for
eign
cur
renc
y co
mm
itmen
ts a
nd a
sset
s 1
,639
,529
,398
1
,116
,900
,358
1
,543
,941
5
35,3
62,0
66
4,0
54,7
07,6
24
481
,676
6
0,17
5,22
6 6
,138
,187
,479
8
6,66
0,97
3,57
6 1
57,9
18,1
82
100
,758
1
,013
,865
,397
0
Tota
l for
eign
cur
renc
y co
mm
itmen
ts a
nd a
sset
s- IR
R eq
uiva
lent
(IRR
m)
53,
153,
543
38,
925,
094
62,
053
4,7
25,6
41
1,1
66,6
20
15,
645
538
,267
2
8,86
1,75
7 2
,487
,170
8
9,54
0 8
,220
5
02,8
77
0
dues
to b
anks
and
oth
er fi
nanc
ial i
nstit
ution
s (7
,902
,543
) (5
18,5
67,9
97)
0 (8
49,0
94)
00
(59,
283,
888)
(260
,999
,584
) (6
5,40
2,27
6,10
0)0
0 (3
6,27
3,19
4)0
Cust
omer
s dep
osit
(36,
244,
479)
(201
,357
,955
) (2
26,5
27)
(7,6
05,9
54)
(206
,092
,661
) (4
,070
) (1
,341
,981
) (5
,108
,174
,588
) (1
5,64
1,31
6,13
7) (7
,566
,792
)0
(253
,818
,696
)0
Divi
dend
pay
able
00
00
00
00
00
00
0
Debt
secu
rities
00
00
00
00
00
00
0
Corp
orat
e ta
x pr
ovisi
on0
00
00
00
00
00
00
Prov
ision
s and
oth
er d
ebts
(454
,853
,274
) (1
16,8
90,9
89)
0 (4
,376
,930
) (7
,217
,100
)0
(1,3
05,9
32)
(140
,523
,166
) (6
68,1
23,9
46)
00
(1,4
63,0
00)
0
Prov
ision
for e
mpl
oyee
s reti
rem
ent b
enefi
ts0
00
00
00
00
00
00
Term
dep
osits
(1,2
31,2
71,6
14)
(196
,697
,882
) (3
47,6
26)
(3,5
69,8
70)
0 (3
9,75
3)0
00
00
00
Tota
l for
eign
cur
renc
y lia
biliti
es (1
,730
,271
,910
) (1
,033
,514
,823
) (5
74,1
53)
(16,
401,
849)
(213
,309
,761
) (4
3,82
3) (6
1,93
1,80
1) (5
,509
,697
,338
) (8
1,71
1,71
6,18
3) (7
,566
,792
)0
(291
,554
,890
)0
Com
mitm
ents
for L
/Cs
0 9
7,93
7,37
0 0
1,8
41,0
74
567
,448
,501
0
26,
091,
126
268
,932
,232
2
3,07
3,02
3,82
9 4
,895
,000
0
373
,985
,360
0
Com
mitm
ents
for L
/Gs
00
00
00
00
00
00
0
Oth
er C
usto
mer
s' Co
mm
itmen
ts0
(97,
937,
370)
0 (1
,841
,074
) (5
67,4
48,5
01)
0 (2
6,09
1,12
6) (2
68,9
32,2
32)
(23,
073,
023,
829)
(4,8
95,0
00)
0 (3
73,9
85,3
60)
0
Tota
l for
eign
cur
renc
y co
mm
itmen
ts0
00
00
00
00
00
00
Tota
l for
eign
cur
renc
y co
mm
itmen
ts a
nd a
sset
s (1
,730
,271
,910
) (1
,033
,514
,823
) (5
74,1
53)
(16,
401,
849)
(213
,309
,761
) (4
3,82
3) (6
1,93
1,80
1) (5
,509
,697
,338
) (8
1,71
1,71
6,18
3) (7
,566
,792
)0
(291
,554
,890
)0
Tota
l for
eign
cur
renc
y co
mm
itmen
ts a
nd a
sset
s- IR
R eq
uiva
lent
(IRR
m)
(56,
095,
415)
(36,
019,
025)
(23,
076)
(144
,779
) (6
1,37
3) (1
,423
) (5
53,9
80)
(25,
906,
597)
(2,3
45,1
26)
(4,2
90)
0 (1
44,6
11)
0
Net
of o
pen
posi
tion
asse
t/(li
abili
ty) a
t 20
Mar
ch 2
018
(90,
742,
512)
83,
385,
535
969
,788
5
18,9
60,2
18
3,8
41,3
97,8
64
437
,852
(1
,756
,575
) 6
28,4
90,1
40
4,9
49,2
57,3
92
150
,351
,389
1
00,7
58
722
,310
,507
0
Net
of o
pen
posi
tion
at 2
0 M
arch
201
8- IR
R eq
uiva
lent
(IRR
m)
(2,9
41,8
72)
2,9
06,0
69
38,
977
4,5
80,8
62
1,1
05,2
47
14,
222
(15,
713)
2,9
55,1
61
142
,044
8
5,24
9 8
,220
3
58,2
66
0
NO
P to
cap
ital b
ase
(%)
(4.0
6) 4
.01
0.0
5 6
.32
1.5
2 0
.02
(0.0
2) 4
.08
0.2
0 0
.12
0.0
1 0
.49
0
NO
P to
cap
ital b
ase
base
d on
oth
er c
ontin
genc
y ra
tios (
%)
(5.8
1) 5
.74
0.0
8 9
.05
2.1
8 0
.03
(0.0
3) 5
.84
0.2
8 0
.17
0.0
2 0
.71
0
63-5-6- Capital required for Market risk (10 days horizon with 99% confidence level):
Shares Risk Foreign exchange rate risk
Measurement methodVaR
(10 days)Required Capital
ProvisionVaR
(10 days)Required Capital
Provision
Total Capital required for market risk
Variance-Covariance 1,664,626 3,657,600 1,521,634 1,217,307 4,874,907
2017/18 2016/17
Positive NOP of all foreign currency -IRRm 19,395,976 12,194,317
Negative NOP of all foreign currency -IRRm (88,200) (2,957,585)
NOP-IRRm 19,307,776 9,236,732
Positive NOP of all foreign currency to capital base (%) 26.75 16.82
Positive NOP of all foreign currency to capital base based on other effective contingency ratios (%) 31.86 24.10
Negative NOP of all foreign currency to capital base (%) (0.12) (4.08)
Negative NOP of all foreign currency to capital base based on other effective contingency ratios (%) 0.14 (5.84)
63-5-5-1: Summary of NOP
Regarding the probable percentage of changes in foreign exchange rates the value at risk for investments in
shares and other investments having market value is as follows:
2017/18 2016/17
Probable changes in market value
(%)
Impact on profit/(loss)
Probable changes in market value
(%)
Impact on profit/(loss)
USD (+11,-10) (15,857,352) (+12,-11) 32,360,594
EUR (+11,-11) (48,320,526) (+11,-10) (29,060,693)
GBP (+11,-12) (50,045) (+10,-12) (467,721)
AED (+13,-13) (67,968,132) (+14,-13) (59,551,204)
JPY (+11,-12) (20,317,767) (+10,-10) (11,052,470)
CHF (+12,-12) (1,579,113) (+12,-11) (156,441)
TRY (+11,-10) (881,997) (+11,-14) 219,976
CNY (+12,-11) (48,831,993) (+13,-13) (38,417,088)
KRW (+13,-10) (13,230,826) (+11,-10) (1,420,437)
RUB (+11,-12) (1,485,365) (+10,-11) (937,742)
OMR (+11,-13) (128,266) (+12,-12) (98,644)
INR (+12,-11) (4,961,924) (+11,-12) (4,299,192)
THB (+10,-10) 0 (+11,-10) 0
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
IRRm
IRRm
IRRm
www.bankpasargad.com 165
Managem
ent Report
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eportFinancial S
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63-5-7- Gap analysis of assets and liabilities sensitive to profit rate (current period)
2017/18
less than 1 month
1 to 3 months
3 months to one year
one to five years
more than five years
Non-sensative to profit
rate
Assets
Cash 73,948,428 0 0 0 0 0
dues from banks and other financial institutions 23,907,158 0 0 0 0 0
dues from government 0 0 0 0 0 0
Credit facilities and dues from govermental entities 0 0 0 0 0 0
Credit facilities and dues from non-govermental entities 115,153,153 150,512,581 172,991,260 109,963,125 40,563,292 0
Investment in shares and securities 16,646,262 0 0 0 0 0
dues from subsidiaries and associates 2,084,069 0 0 0 0 0
Other accounts receivable 3,329,891 0 0 0 0 0
Tangible fixed assets 0 0 0 0 12,086,368 0
Intangible assets 0 0 0 0 8,669,925 0
legal deposit 64,315,225 0 0 0 0 0
Other assets 0 0 0 0 58,006,948 0
299,384,186 150,512,581 172,991,260 109,963,125 119,326,533 0
Liabilities
dues to banks and other financial institutions 38,563,382 0 0 0 0 0
Customers deposit 36,945,383 0 0 0 0 0
Dividend payable 165,040 0 0 0 0 0
Profit paid on term investment deposits 7,417,588 0 0 0 0 0
Corporate tax provision 416,741 0 0 0 0 0
Provisions and other debts 104,615,939 0 0 0 0 0
Term deposits 64,907,471 109,915,276 271,005,806 60,712,654 95,685,287 0
Total liabilities 253,031,544 109,915,276 271,005,806 60,712,654 95,685,287 0
Total equity 0 0 0 0 61,827,118 0
Total liabilities and equity 253,031,544 109,915,276 271,005,806 60,712,654 157,512,405 0
Gap 46,352,642 40,597,305 (98,014,546) 49,250,471 (38,185,872) 0
Accumulated Gap 46,352,642 86,949,947 11,064,599 38,185,872 0 0
IRRm
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63-6- Operational Risk
63-6-1- Operational Risk definition
Operational risk is the risk of loss resulting from inadequate or failed internal processes, people, and systems,
or from external events.
63-6-2- Executive departments of operational risk management
Operational risk is managed by Risk Management Department with the cooperation of Inspection, Internal
Audit and other related departments through continuous supervision and on site and off site inspections at
branch level.
63-6-3- Proactive actions for preventing intentional and unintentional errors
Based on predetermined patterns and automatic recording in core banking, operational risk has been de-
creased significantly. Also, internal controls has been devised with cooperation of Internal Control Analysis
Committee and Risk Management Department and other related departments.
63-6-4- Operational risk measurement
In order to monitor operational risk continuously, operational loss amounts and minimum required capital are
calculated as well as other key indices. (Also calculation of required capital in base method is subject to the
definition of business lines, and presentation of financial statements on operating loss amount is subject to
finalization of Enterprise Risk Management System).
63-6-5- Operational risk control and monitoring mechanism
Risk management department reports trends and indices in determined intervals to Risk Management
Sub-committees. The results will be sent to Risk Management Supreme Committee and after investigations
and required corrections send them to the board. Finally the board will decide on cases based on Supreme
Committee's recommendations. The ratified items will be notified to whole bank.
63-6-6- Minimum Capital requirement for operational risk
Value at risk is calculated as follows:
measurement method Value at risk (operational risk)
Basic Approach 415,142
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63-7- Capital management
63-7-1- Capital base
2017/18 2016/17
Tier 1 capital
Capital after deduction of revaluation amount 50,400,000 50,400,000
Share premium 0 0
legal reserve 11,609,848 11,609,848
Contingency reserve 3,869,949 3,869,949
Other reserves 0 0
Share premium 0 0
Retained earnings/(loss) (4,052,679) (6,385,507)
Total Tier 1 capital before regulatory adjustment 61,827,118 59,494,290
lesss : Regulatory Adjustment
treasury share
Bank's shares purchased by subsidiaries ( In IPO or capital increase process)
Intangible assets (8,669,925) (6,246,723)
mutual investment in stock of credit institutions or non-affiliated financial entities 0 0
Investment of More than 10 % of the bank's Tier 1 capital in stock of credit institutions or financial entities (less than 10 % of their total stock) 0 0
Investment of More than 10 % of the bank's Tier 1 capital in stock of credit institutions or financial entities (more than 10 % of their total stock) (8,018,032) (7,672,950)
Investment in non-financial subsidiaries (2,215,330) (2,215,330)
Other regulatory adjustments 0 0
Total regulatory adjustments (18,903,287) (16,135,003)
Tier 1 capital after deduction of regulatory adjustments 42,923,831 43,359,287
Tier 2 capital
Issuance of debt securities and their premium and other liabilities by credit institutions 0 0
General provision of doubtful debts up to 1.25% total risk weighted assets 9,339,106 7,250,015
Adjusted amount of revaluation of fixed assets, stock and securities 0 0
Total Tier 2 capital 9,339,106 7,250,015
lesss :
Excess of Tier 2 capital from Tier 1 capital
Tier 2 capital acceptable for capital base 9,339,106 7,250,015
Capital Base 52,262,937 50,609,302
Effective Capital Base 72,517,417 72,517,417
IRRm
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63-7-2- Capital allocation
2017/18 2016/17
Balance sheet Items Amount Conversion Factor (%)
Adjusted Amount
Risk Coefficient
(%)
Risk Weighted Assets and
CommitmentsCapital Charge
Risk Weighted Assets and
CommitmentsCapital Charge
Cash 6,392,138 100 6,392,138 0 0 0 0 0
legal deposit 64,315,225 100 64,315,225 0 0 0 0 0
dues from CBI 4,747,070 100 4,747,070 0 0 0 0 0
Securities issued by CBI 0 100 0 0 0 0 0 0
dues from banks and other financial institutions with Capital adequacy ratio of greater than or equal to 8 percent
0 100 0 20 0 0 0 0
dues from banks and other financial institutions with Capital adequacy ratio between 4 to 8 percent
19,483,854 100 19,483,854 50 9,741,927 779,354 2,035,504 162,840
dues from banks and other financial institutions with Capital adequacy ratio between 2 to 4 percent
67,232,523 100 67,232,523 80 53,786,018 4,302,881 34,697,234 2,775,779
dues from banks and other financial institutions with Capital adequacy ratio of less than 2 percent
0 100 0 100 0 0 0 0
dues from banks and other financial institutions without audited financial statements for more than 2 years
0 100 0 100 0 0 0 0
dues from government 0 100 0 20 0 0 511,439 40,915
dues from non-governmental entities 0 100 0 100 0 0 0 0
Credit facilities principle (Mudarabah and Musharakah) dues from stock exchange listed companies
8,020,706 100 8,012,364 150 12,018,546 961,484 17,273,872 1,381,910
Credit facilities principle (Mudarabah and Musharakah) dues from other entities
486,848,625 100 486,342,285 200 972,684,569 77,814,766 650,794,363 1,381,910
Non-commerical investment in stock exchange listed companies 4,556,722 100 4,556,722 300 13,670,166 77,814,766 13,094,204 52,063,549
Non-commerical investment in other entities 1,538,842 100 1,538,842 400 6,155,368 1,093,613 9,713,675 1,047,536
Cost of non-commercial investment in other financial institutes or financial entities which is less than 10 percent of their share and less than 10 percent of bank Tier 1 Capital
977,131 100 977,131 300 2,931,394 492,429 3,343,515 777,094
Cost of non-commercial investment in other financial institutes or financial entities which is less than 10 percent of their share and more than 10 percent of bank Tier 1 Capital
0 100 0 300 0 234,511 0 267,481
Cost of non-commercial investment in other financial institutes or financial entities which is more than 10 percent of their share
1,530,393 100 1,530,393 300 4,591,180 0 130,724 0
Real estate credit facilities 461,186 100 385,562 50 192,781 367,294 1,241,842 10,458
Other credit facilities up to IRRm 1000 2,165,078 100 2,152,510 75 1,614,383 15,422 357,545 99,347
Other credit facilities between IRRm 1000 and IRRm 5000 1,008,994 100 683,307 100 683,307 129,151 14,650 28,604
Other credit facilities between IRRm 5000 and IRRm 10000 62,145 100 52,119 150 78,179 54,665 106,101 1,172
Other credit facilities more than IRRm 10000 40,535,324 100 39,083,198 200 78,166,396 6,254 78,151,523 8,488
IRRm
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Over due debts with special provision of less than 20 percent 9,781,894 100 9,781,894 150 14,672,841 6,253,312 12,166,280 6,252,122
Over due debts with special provision of between 20 and 50 percent
8,670,819 100 8,670,819 100 8,670,819 1,173,827 7,189,584 973,302
Over due debts with special provision of more than 50 percent 8,491,880 100 8,491,880 50 4,245,940 693,666 3,520,606 575,167
Securities issued by non-governmental entities 0 100 0 100 0 339,675 0 281,648
dues from related parties and entities 2,084,691 100 2,084,691 100 2,084,691 0 984,406 0
Other accounts receivable 3,329,270 100 3,329,270 100 3,329,270 166,775 2,105,948 78,752
Tangible fixed assets 20,756,293 100 20,756,293 100 20,756,293 266,342 18,266,812 168,476
Other assets 58,006,950 100 58,006,950 100 58,006,950 1,660,503 35,858,440 1,461,345
dues from other countries with credit rating between AA- and AAA+ n
0 100 0 0 0 4,640,556 0 0
dues from other countries with credit rating between A- and A+ n 0 100 0 20 0 0 0 0
dues from other countries with credit rating between BBB- and BBB+ n
0 100 0 50 0 0 0 0
dues from other countries with credit rating between B- and BB+ n
0 100 0 100 0 0 0 0
dues from other countries with credit rating less than B- n 0 100 0 150 0 0 0 0
dues from other countries without credit rating 0 100 0 100 0 0 0 0
dues from multilateral development banks with credit rating between AA- and AAA+ n
0 100 0 20 0 0 0 0
dues from multilateral development banks with credit rating between A- and A+ n
0 100 0 50 0 0 0 0
dues from multilateral development banks with credit rating between BBB- and BBB+ n
0 100 0 50 0 0 0 0
dues from multilateral development banks with credit rating between B- and BB+ n
0 100 0 100 0 0 0 0
dues from multilateral development banks with credit rating less than B- n
0 100 0 150 0 0 0 0
dues from multilateral development banks without credit rating
0 100 0 50 0 0 0 0
dues from other countries financial institutes or financial entity with credit rating between AA- and AAA+ n
0 100 0 20 0 0 0 0
dues from other countries financial institutes or financial entity with credit rating between A- and A+ n
0 100 0 50 0 0 0 0
dues from other countries financial institutes or financial entity with credit rating between BBB- and BBB+ n
0 100 0 100 0 0 0 0
dues from other countries financial institutes or financial entity with credit rating between B- and BB+ n
0 100 0 100 0 0 0 0
dues from other countries financial institutes or financial entity with credit rating less than B- n
0 100 0 150 0 0 0 0
dues from other countries financial institutes or financial entity without credit rating
0 100 0 100 0 0 0 0
2017/18 2016/17
Balance sheet Items Amount Conversion Factor (%)
Adjusted Amount
Risk Coefficient
(%)
Risk Weighted Assets and
CommitmentsCapital Charge
Risk Weighted Assets and
CommitmentsCapital Charge
IRRm
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170 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
dues from other countries legal entities with credit rating between AA- and AAA+ n
0 100 0 20 0 0 0 0
dues from other countries legal entities with credit rating between A- and A+ n
0 100 0 50 0 0 0 0
dues from other countries legal entities with credit rating between BB- and BBB+ n
0 100 0 100 0 0 0 0
dues from other countries legal entities with credit rating less than BB-n
0 100 0 150 0 0 0 0
dues from other countries legal entities without credit rating 0 100 0 100 0 0 0 0
Off Balance sheet ItemsRevocable commitments 0 0 0 100 0 0 0 0
Unrevocable commitments after adjustment with maturity less than a year
0 20 0 100 0 0 0 0
Unrevocable commitments after adjustment with maturity more than a year
0 50 0 100 0 0 0 0
Commitments for L/Cs with collaterals 102,298,079 50 51,149,039 100 51,149,039 0 37,411,269 0
Commitments for L/Cs without collaterals 0 50 0 100 0 0 0 2,992,902
Commitments for L/Gs after adjustments 48,395,635 50 24,197,818 100 24,197,818 4,091,923,159,465 19,779,582 0
Commitments for transactional contracts 0 50 0 100 0 1,935,825 0 1,582,367
other commitments 332,602 100 332,602 100 332,602 0 273,979 0
Total risk weighted assets and commitments for credit risk 972,024,070 894,286,500 1,343,760,476 4,092,104,356,538 949,023,096 74,413,164
2017/18 2016/17
Balance sheet Items Amount Conversion Factor (%)
Adjusted Amount
Risk Coefficient
(%)
Risk Weighted Assets and
CommitmentsCapital Charge
Risk Weighted Assets and
CommitmentsCapital Charge
IRRm
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63-7-3- Total of market risk-weighted assets at the financial year ended March 20, 2018 equals to
IRRm 19,788,349
2017/18 2016/17
Description Amount Risk Coefficient(%)
Capital Charge Amount Risk
Coefficient(%)Capital Charge
Commercial stocks 4,556,722 8 364,538 4,364,735 8 349,179
Specific risk for commercial securities 19,559 5 978 209,986 5 10,499
General risk for commercial securities with remaining maturity less than a month 0 0 0
General risk for commercial securities with remaining maturity Between 1 to 3 months 0 20 20
General risk for commercial securities with remaining maturity Between 3 to 6 months 0 40 40
General risk for commercial securities with remaining maturity Between 6 to 12 months 0 70 103,359 0.7 724
General risk for commercial securities with remaining maturity Between 1 to 2 years 19,559 1.25 244 35,480 1.25 444
General risk for commercial securities with remaining maturity Between 2 to 3 years 0 1.75 0 65,178 1.75 1,141
General risk for commercial securities with remaining maturity Between 3 to 4 years 0 2.25 5,970 2.25 134
General risk for commercial securities with remaining maturity Between 4 to 5 years 0 2.75 2.75
General risk for commercial securities with remaining maturity Between 5 to 7 years 0 3.25 3.25
General risk for commercial securities with remaining maturity Between 7 to 10 years 0 3.75 3.75
General risk for commercial securities with remaining maturity Between 10 to 15 years 0 4.5 4.5
General risk for commercial securities with remaining maturity Between 15 to 20 years 0 5.25 5.25
General risk for commercial securities with remaining maturity more than 20 years 0 6 6
The sum of the net short positions or the sum of the net long positions, whichever is the greater
15,216,347 8 1,217,308 12,194,317 8 975,545
Total capital charge for market risk 1,583,068 1,337,665
Coefficient 12.5 12.5
Total risk weighted assets for market risk 19,788,349 16,720,818
IRRm
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
172 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
63-7-4- Total of operational risk-weighted assets at the financial year ended March 20, 2018 equals to
IRRm 5,189,272
2017/18 2016/17
Description Amount Risk Coefficient (%)
Capital Required
for coverage operational
risk
Amount Risk Coefficient (%)
Capital Required
for coverage operational
risk
Average gross income of past three years 2,767,612 15 415,142 6,638,231 15 995,735
Coefficient 12 12
Total risk weighted assets for operational risk 5,189,272 12,446,683
63-7-5- Capital adequacy ratio
Capital adequacy ratio at the finantial year ended 20 Mar, 2018 is 3.82%.
63-7-6- Leverage ratio
leverage ratio is total assets to equity and for the finantial year ended 20 Mar, 2018 equals to 7.26.
2017/18 2016/17
Capital base 52,262,938 50,609,303
Risk weighted assets (Credit Risk) 1,343,760,476 949,023,096
Risk weighted assets (Market risk) 19,788,349 16,720,817
Risk weighted assets (Operational Risk) 5,189,272 12,446,683
Total risk weighted assets 1,368,738,097 978,190,596
Tier 1 Capital ratio 3.14% 4.43%
Capital Adequacy ratio 3.82% 5.17%
2017/18 2016/17
Total equity 61,827,118 59,494,290
Total assets 852,177,685 649,899,350
Leverage ratio 7.26 9.15
IRRm
IRRm
IRRm
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64- Operating sectors
64-1- Section categorizations basis
Bank Pasargad business lines are retail and corporate banking.
64-2- Information on reportable operating sectors
All reportable information of related business lines are presented in the following table. Profit before tax is used
as a performance criterion.
Collaborative banking
Interest-free banking
International banking
Electronic banking
Other activities Total
Income from credit facilities and deposits 88,165,741 8,972,388 97,138,129
Cost for profit of deposits (81,047,257) (4,115,738) (85,162,995)
Net income from credit facilities and deposits 7,118,484 4,856,650 11,975,134
Fee and commission income 1,752,673 23,647 761,531 1,399,138 3,936,989
fee and commission cost (242,288) - (1,880,352) (2,122,640)
Net fee and commission income 1,510,385 23,647 761,531 (481,214) 1,814,349
Net investment profit 784,092 784,092
Net foreign exchange transactions profit (loss) 13,830,359 13,830,359
Other operational income 435,708 435,708
Net incom from outside the bank 784,092 13,830,359 435,708 15,050,159
Net Income from bank's sections 8,628,869 23,647 5,618,181 (481,214) 0 13,789,483
Total income from bank's operating section 9,412,961 23,647 19,448,540 (481,214) 435,708 28,839,642
Doubtful debt expenses for operating section (16,522,253) 0 (16,522,253)
Other Direct cost attributable to operating section 0 0 0
Profit/(loss) of each section before general costs unattributable (7,109,292) 23,647 19,448,540 (481,214) 435,708 12,317,389
General costs Unattributable to section (9,976,765)
Profit before tax 2,340,624
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
174 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
64-3- Geographical concentration of major items of assets, liabilities and income
In the present of geographical information, major items of assets are presented based on the place of their loca-
tion and income and liabilities are presented based on the residency of the other party.
2017/18
IRAN Total
Assets:
Cash 73,948,428 73,948,428
dues from banks and other financial institutions 23,907,158 23,907,158
dues from government 0 0
Credit facilities and dues from governmental entities 0 0
Credit facilities and dues from non-governmental entities 589,183,411 589,183,411
Investment in shares and securities 16,646,262 16,646,262
dues from subsidiaries and associates 2,084,069 2,084,069
legal deposit 64,315,225 64,315,225
Tangible fixed assets 12,086,368 12,086,368
Intangible assets 8,669,925 8,669,925
Total 790,840,846 790,840,846
Liabilities:
dues to banks and other financial institutions (38,563,382) (38,563,382)
Customers deposit (36,945,383) (36,945,383)
Debt Securities 0 0
Term deposits (602,226,494) (602,226,494)
Profit of term deposits payable (7,417,588) (7,417,588)
Total (685,152,847) (685,152,847)
Income 116,125,277 116,125,277
65- RELATED PARTY TRANSACTIONS
65-1- Changes in majority shareholders (more than 1%)
There is no changes to the majority shareholder (more than 1%) during the financial year 2017/18.
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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65-2 Bnak's Pasargad transactions with related parties
Related Party Relationship Subject of Transaction
Is subject to article 129 of thecommer-cial code?
Method ofdetermin-ing price
Amount(IRRm)
Gross profit/(Loss)
Balance receivable/ (Payable) 20-Mar-2018
Middle East Mines & Mineral Industries DevelopmentHolding Co.
Shareholder andboard member
Bank’s share of 2015/2016 financial year dividends
Yes
- 6,587 -
4,074,169Credit Facilities Late Payment Penalties Relief Board 32,018 32,018
Credit facilities paid Board 92,201 5,274
Settlement of facilities - 2,336,975 314,648
Mabna Khavar Miyaneh Co. Shareholder andboard member
Credit facilities paidYes
Board 5,518,014 97,7825,615,873
Settlement of facilities - 8,795,554 731,362
Pasargad Leasing Co. Shareholder andboard member
Debt settlement as part of Bank’s share to Pasargad Leasing capital increase up to IRR 765 bn
Yes
- 63,650 -
854,121Credit Facilities Late Payment Penalties Relief Board 27,110 27,110
Credit facilities paid Board 407,500 49,063
Settlement of facilities - 780,000 75,658
Pasargad Machinery andEquipment Leasing Co.
Shareholder andboard member
Credit Facilities Late Payment Penalties Relief
Yes
Board 26,162 26,162
4,400,139Credit facilities paid Board 100,000 15,842
Settlement of facilities - 100,000 1,205
Pasargad Arzesh Afarinan Co. Shareholder andboard member - Yes - - - 0
Pasargad Aryan ICT Co.(FANAP)
Shareholder andboard member
Sale of 210 used ATM units to FANAP
Yes
- 33,600 -
2,146,775
On account paid - 80,000 -
Settlement of on account paid - 43,586 -
Credit Facilities Late Payment Penalties Relief Board 4,706 4,706
Issued L/Gs Board 53,792 703
Settlement of Issued L/Gs - 43,478 -
Credit facilities paid Board 1,132,300 37,233
Settlement of facilities - 1,568,757 135,607
Pasargad Insurance Co. Shareholder andboard member
Transfer of Fatemi building document to PasargadInsurance
Yes
- 33,235 -
8,695Bank’s share of 2016/2017 financial year dividends - 71,085 -
Credit facilities paid Board 43,039 184
Settlement of facilities - 265 -
Pasargad E-payment Co. Shareholder andboard member
Settlement of 34 units merchandise
Yes
- 19,227 -
561,475Credit facilities paid Board 100,000 2,175
Settlement of facilities - 189,541 31,407
Bank Pasargad Brokerage Co. Shareholder andboard member
Debt settlement as part of Bank’s share to Pasargad Brokerage capital increase up to IRR 180 bn
Yes
- 17,150 -
22,877Issued L/Gs Board 13,488 313
Settlement of facilities - 508,125 2,193
Pasargad Foreign ExchangeCo.
Shareholder andboard member
Settlement of Bank’s share of 2016/2017 financialyear dividends Yes - 54,000 - (12,201)
Iranian Reinsurance Co. Shareholder andboard member Bank’s share of 2016/2017 financial year dividends Yes - 19,900 - 0
Tamin Atieh Sarmaye EnsaniCo.
Mutual BoardMember - Yes - - - 0
Nozhan Sanat Atisaz Co. Mutual BoardMember Settlement of sales fees for properties owned Yes - 15,529 - 0
Bank Pasargad FinancialService Co.
Mutual BoardMember Settlement of facilities Yes - 400 52 0
Dadepardazan TadbirSarmaye Co.
Mutual BoardMember - Yes - - - 0
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Sirjan Iranian Co. Mutual BoardMember
Issued L/Gs
Yes
Board 503,686 6,636
20,142,068Settlement of Issued L/Gs - 175,088 -
Credit facilities paid Board 12,923,665 271,569
Settlement of facilities - 19,495,229 1,811,220
Pars Aryan Investment Co. Mutual BoardMember
Credit Facilities Late Payment Penalties Relief
Yes
Board 22,055 22,055
1,660,819Credit facilities paid Board 1,625,774 35,045
Settlement of facilities - 2,403,669 187,958
Related Party Relationship Subject of Transaction
Is subject to article 129 of thecommer-cial code?
Method ofdetermin-ing price
Amount(IRRm)
Grossprofit /(Loss)
Balance receivable/ (Payable) 20-Mar-2018
Rahbord Sarmaye IranianCo.
Member of thegroup
Settlement of facilitiesNo
- 531,417 34,852338,379
Credit facilities paid Board 134,479 3,543
Padideh Taban Trade Co. Under the control of the mainmanagers
Settlement of facilities
No
- 2,046,801 185,525
3,065,050
Credit facilities paid Board 1,301,041 9,935
Poshesh Tamin AtiehBuilding Co.
Under the control of the mainmanagers
Settlement of facilities
No
- 5,594,826 507,284
5,172,347
Credit facilities paid Board 3,493,303 5,077
No-Andish Toseee Matin Co. Under the control of the mainmanagers
Settlement of facilities
No
- 9,481,105 766,490
5,578,052
Credit facilities paid Board 4,843,955 52,245
Tamin Maskan Co. Under the control of the mainmanagers
Credit Facilities Late Payment Penalties Relief
No
Board 260,191 260,191
20,560,806Settlement of facilities - 11,795,442 2,231,241
Credit facilities paid Board 14,964,537 292,819
pasargad group VentureCapital
Under the control of the mainmanagers
on account paid
No
- 50,000 -
194,681Settlement of facilities - 138,949 10,436
Credit facilities paid Board 84,096 2,635
Arzesh Pardaz Aryan Co. Member of thegroup
Issued L/GsNo
Board 160 477,367
Settlement of facilities - 158,000 9,215
Chakad Tavangary Co. Under the control of the mainmanagers
- No - - - 12,500
Pishgan Mihan NegarTrade Co.
Under the control of the mainmanagers
Settlement of facilitiesNo
- 5,600,970 434,9564,359,946
Credit facilities paid Board 4,269,615 90,331
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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Datis Aryan Qheshm Co. Mutual BoardMember
Debt Settlement
No
- 37,662 -
401,018
on account paid - 132,000 -
Settlement of on account paid - 132,000 -
Credit Facilities Late Payment Penalties Relief Board 140 140
Issued L/Gs Board 16,450 92
Settlement of Issued L/Gs - 6,950 -
Settlement of facilities - 234,450 17,651
Credit facilities paid Board 30,000 1,080
Adonis Electronic ServiceCo.
Under the control of the mainmanagers
Issued L/Gs
No
Board 44,244 529
134,209Settlement of Issued L/Gs - 28,180 -
Settlement of facilities - 100,000 10,776
Credit facilities paid Board 90,878 7,445
Pasargad Management & Human Capital Research andDevelopment Institute Co.
Under the control of the mainmanagers
- No - - - 13,204
Modaberan Tejarat Iraninan Co.
Under the control of the mainmanagers
Settlement of facilitiesNo
- 65,500 16,807822,353
Credit facilities paid Board 104,713 1,268
Aryan Pasargad Construc-tion Management Co.
Under the control of the mainmanagers
Issued L/Gs
No
Board 14,420 302
5,456,167Settlement of Issued L/Gs - 4,730 -
Settlement of facilities - 800,659 64,821
Credit facilities paid Board 583,855 17,222
Aryan Pasargad Construc-tion Management Co.
Member of thegroup
Issued L/GsNo
Board 10,755 112(1,452)
Settlement of Issued L/Gs - 8,220 -
Pardazesh Electronic RashedSamane Co.
Under the control of the mainmanagers
Credit Facilities Late Payment Penalties Relief
No
Board 431 431
118,130Issued L/Gs Board 32,500 624
Settlement of facilities - 70,000 12,597
Credit facilities paid Board 110,320 3,286
Related Party Relationship Subject of Transaction
Is subject to article 129 of the commercialcode?
Method ofdetermin-ing price
Amount(IRRm)
Grossprofit /(Loss)
Balance receivable/ (Payable) 20-Mar-2018
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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Related Party Relationship Subject of Transaction
Is subject to article 129 ofthe commer-cial code?
Methodof deter- miningprice
Amount(IRRm)
Grossprofit /(Loss)
Balance receiv- able/(Payable) 20-Mar-2018
Pasargad Energy Development Co. Member of the groupIssued L/Gs
NoBoard 220,490 1,764
12,500Settlement of Issued L/Gs - 158,217 -
Pasargad Mass Development Co. Member of the groupSettlement of facilities
No- 1,256,731 185,659
9,584,137Credit facilities paid Board 1,663,555 48,887
Pasargad Ayande Negar Trade Manage-ment Co.
Under the control of themain managers
Sale of 13,07 % as part ofBank’s share in MAPNA Co.
No
- 849,488 -
2,485,314
Debt settlement of 13,07 % as part of Bank’s share inMAPNA Co.
- 849,488 -
Settlement of facilities - 1,069,783 134,088
Credit facilities paid Board 796,518 23,769
Etick Pars Smart Technology Develop-ment Co.
Under the control of themain managers - No - - - 218,866
Iranian Babak Copper Co. Mutual Board Member
Issued L/Gs
No
Board 32,787 629
6,596,773Settlement of facilities - 5,942,511 587,818
Credit facilities paid Board 2,716,450 60,507
Nezam Mohandesi Aryan ConstructionManagement Co.
Under the control of themain managers
Settlement of facilitiesNo
- 836,105 84,835775,081
Credit facilities paid Board 296,338 2,782
Naftanir Industries Co. Member of the groupSettlement of facilities
No- 29,770,472 2,637,870
43,984,294Credit facilities paid Board 12,759,487 59,646
Saman Tejarat Tadbir Iranian Member of the group
Transfer of Ehdaye Ozv,Mojab Touba & Amin atiye nikoo heritage fund to Saman TejaratTadbir Iranian Co. No
- 73,500 -9,913,122
Settlement of facilities - 5,638,077 474,746
Shams Pasargad Power Generation Co.(Tabesh) Member of the group
Settlement of facilitiesNo
- 2,400,172 342,4113,155,349
Credit facilities paid Board 3,035,589 119,760
Hafez Andisheh Mad Co. Member of the group
.Transfer of Miras heritage fundto Hafez Andisheh Mad Co No
- 49,999 -3,021,593
Settlement of facilities - 2,329,806 187,016
Padide Taban Saramad Co. Member of the group Credit facilities paid No Board 1,500,000 54,812 2,705,418
Miras Rastin Pars Co. Member of the group
Transfer of National wrestlingfund No
- 60,600 -2,716,123
Settlement of facilities - 1,788,281 150,113
Payam Avaran Modirate Iranian Co. Member of the group Settlement of facilities No - 2,283,056 189,212 2,276,748
Kashefan No Andish Pars Co. Member of the group Settlement of facilities No - 1,899,183 234,541 2,181,211
Petro Kariz Omid Kish Co. Member of the group - No - - - 1,657,707
Tadbir Sazan Saramad Co. Member of the group Settlement of facilities No - 31,100 1,668 1,179,284
Pars Behin Oil Refinery Co. Member of the group - No - - - 1,117,721
Pasargad Trade Co. Member of the group Settlement of facilities No - 1,697,472 138,499 1,034,859
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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Ostovan Kish Drilling Co. Member of the group Settlement of facilities No - 500,000 46,603 651,920
Qeshm Movaled Co. Member of the group Settlement of facilities No - 1,000,000 84,493 601,570
Sivan Tadbir Trade Co. Member of the group Settlement of facilities No - 416,253 35,095 365,749
Pasargad Aryan Services Co. Member of the group Credit facilities paid No Board 20,000 3 92,497
Petro Danial Kish Co. Member of the group Settlement of facilities No - 57,918 3,199 20,562
Niroo Gostar Sirjan Co. Member of the group Settlement of facilities No - 20,000 937 10,858
Zarand Iranian Steel Co. Member of the group Settlement of facilities No - 46,832,861 4,160,871 37,586,145
Bootiyaye Iranian Steel Co. Member of the group Settlement of facilities No - 3,971,182 422,997 12,037,906
Middle East Mines & Mineral Renovation& Development Co. Member of the group
Settlement of facilities
No
- 1,031,074 135,311
2,176,436
Credit facilities paid Board 220,859 28,633
MANA Iranian industries Renovation &Development Structure Co. Member of the group Settlement of facilities No - 1,336,663 110,960 796,677
Ferosilis Gharb Pars Co. Member of the group Settlement of facilities No - 947,683 74,667 557,511
Related Party Relationship Subject of Transaction
Is subject to article 129 ofthe commer-cial code?
Methodof deter- miningprice
Amount(IRRm)
Grossprofit /(Loss)
Balance receiv- able/(Payable)20-Mar-2018
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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Related Party Relationship Subject of Transaction
Is subject to article 129 of thecommer-cial code?
Methodof deter- miningprice
Amount(IRRm)
Grossprofit /(Loss)
Balancereceivable/ (Payable) 20-Mar-2018
Karavaran Middle East Industrial Co. Member of the group - No - - - 99,474
Pouya Andishan Sarzamin Mad Co. Member of the group Settlement of facilities No - 6,746,523 558,345 4,143,023
Andishehnegar Pasargad Trade DevelopmentCo. Member of the group
.Sale of 16.46 % as part of Bank’s sharein Mabna Khavarmianeh C
No
- 1,070,021 -
3,245,658 .Debt settlement of 16.46 % as sale of Bank’s share in Mabna KhavarmianehCo
- 1,070,021 -
Settlement of facilities - 1,691,085 356,509
Tadbirgaran Pasargad Co. Member of the group
.Sale of 14.31 % as part of Bank’s sharein Mabna Khavarmianeh Co
No
- 930,581 -
3,114,581 .Debt settlement of 14.31 % as part of Bank’s sale of share in MabnaKhavarmianeh Co
- 930,581 -
Settlement of facilities - 1,719,611 355,074
Pasargad Aryan Development of Communication Technology Co. Member of the group Settlement of facilities No - 1,877,431 164,667 1,870,546
Darik Investment Development Co. Member of the group Settlement of facilities No - 387,500 37,992 331,235
FANAP Co. Member of the group
on account paid
No
- 15,000 -
65,763Settlement of facilities - 89,401 9,111
Credit facilities paid Board 23,500 188
Magnetic Karan Co. Member of the group Settlement of facilities No - 8,800 791 30,778
Hashtom Construction Co. Member of the group - No - - - 4,711,921
Faraz Pendaran Arya Mouj Co. Member of the groupSettlement of facilities
No- 456 9
401,622Credit facilities paid Board 4,950 3,721
Barid Fanavar Aryan Co. Member of the groupSettlement of facilities
No- 181,978 14,526
170,244Credit facilities paid Board 90,000 1,625
SHENASA Co. Member of the groupon account paid
No- 50,000 -
194,681Settlement of facilities - 138,949 10,436
Arna Noavar Behkavan Co. Member of the group Settlement of facilities No - 9,000 1,324 9,327
Tosee Tejarat Qarbe Iranian Co. Member of the group Settlement of facilities No - 13,562,303 935,120 9,197,666
Nasim Tejarat Co. Member of the group Settlement of facilities No - 696,538 8,859 7,192,934
Andishe Tejarat Soroush Sahand Co. Member of the group Settlement of facilities No - 1,800,297 5,327 5,965,518
Zarin Pasargad Co. Member of the group - No - - - 5,194,163
Dana Gostar Caspian Co. Member of the group - No - - - 4,498,816
Tadbirgaran Pishro Paydar Zarin Co. Member of the group Settlement of facilities No - 1,160,440 3,434 4,337,167
Noandish Pasargad Co. Member of the group - No - - - 4,250,682
Kala Madar Iranian Trade Co. Member of the group - No - - - 3,788,619
Ayande Negar Trade Co. Member of the group - No - - - 3,520,214
Noavaran Khavarmianeh Co. Member of the group - No - - - 3,331,634
Tadbirgaran Rastin Co. Member of the group - No - - - 3,137,883
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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Arman Aryan Project Co. Member of the group - No - - - 3,004,910
Armaghan Trade Co. Member of the group - No - - - 2,724,101
Armannegar Khavarmianeh Co. Member of the group - No - - - 2,637,288
Zarintaab Trade Co. Member of the group - No - - - 2,551,138
Maskan Paydar CO. Member of the group - No - - - 2,490,629
Khavarmianeh Development and Trade Co. Member of the group - No - - - 2,377,834
Pouyaye Iranian Co. Member of the group - No - - - 1,697,140
Tamin Atieh Trade Development Co. Member of the group - No - - - 307,581
Pishro Kalaye Gharb Co. Member of the group - No - - - 124,971
Binesh Gostar Trade Development Co. Member of the group - No - - - 35,846
tejarat va tosee mehrafarinan Vandad Co. Member of the group - No - - - 126,122
Kheradpishgane Aryaii Co. Member of the group Settlement of facilities No - 24,000 2,197 28,957
Noavaran Trade Co. Member of the group Settlement of facilities No - 38,823 2,883 16,076
Parsgostar Novin Co. Member of the group Settlement of facilities No - 14,541 1,295 8,810
Pasargad Aryan Development of Communica-tion Technology Co. Member of the group Settlement of facilities No - 9,000 1,324 8,542
Related Party Relationship Subject of Transaction
Is subject to article 129 of thecommer-cial code?
Methodof deter- miningprice
Amount(IRRm)
Grossprofit /(Loss)
Balancereceivable/(Payable) 20-Mar-2018
66- RETAINED EARNINGS AT THE END OF THE YEAR
Due to the aggregate loss of IRRm 4.052.679 for the financial year ended 19 March 2018, bank does not have
dividend.
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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67- Statement of qard-al-hasan operations
67-1- Balance of qard-al-hasan resources and allocations
Note 2017/18 2016/17
qard-al-hasan resources:
qard-al-hasan savings deposits - IRR 23-2 896,005 694,682
Total qard-al-hasan resources: 896,005 694,682
Credit facilities and receivables from non-governmental entities (before reserves):
Ordinary credit facilities 285,966 170,770
Staff credit facilities 2,075,735 1,677,989
Total qard-al-hasan allocations (2,361,701) (1,848,759)
legal deposit of Qard-al-hasan deposits (89,000) (63,813)
Liquidity reserve of Qard-al-hasan deposits(5%) (44,800) (34,734)
Excess/(Shortage) of resources over qard-al-hasan allocations (1,599,496) (1,252,624)
67-2- Net commission of qard-al-hasan operations
2017/18 2016/17
Commission received from qard-al-hasan credit facilities 23,647 18,446
Net Commission received from qard-al-hasan Operations 23,647 18,446
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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67-3- Classification of qard-al-hasan credit facilities in basis of subject:
67-4- Classification of qard-al-hasan credit facilities in basis of type of customer:
2017/18 2016/17
Marriage 237,050 113,568
Staff 2,075,735 1,677,989
Penitentiary prisoners 639 23,961
Other 48,277 33,241
2,361,701 1,848,759
2017/18 2016/17
Individuals 2,361,700 1,848,759
legal entities - cooperative 0 0
legal entities - others 0 0
2,361,700 1,848,759
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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68- RELATED PARTIES' FACILITIES AND COMMITMENTS
No Customer name ID
Company Profile
Relation type
Ownership Percentage
Net Balance of Facilities Net
balance ofcommit- ments
Net balance of facilitiesand com-mitments
Collateral
Regis- tration
no.
Registrationdate
Regis- tration
placeDirect Indirect Current Overdue Type Value
1 Seyyed KazemMirvalad 3932514327 Management --- --- 0 0 30 30 Promissory Note 162
2 Kamran Ekhtiar 1284437752 ----- ----- ----- Management --- --- 488 0 0 488 check 2,142
3 Arsalan Amiri 3251439138 ----- ----- ----- Management --- --- 1,690 0 0 1,690 check 2,709
4 Abdol Reza Tiznobeik 3874576655 ----- ----- ----- Management --- --- 914 0 0 914 check 2,313
5 Alireza HadianHamedani 1751630013 ----- ----- ----- Management --- --- 5,171 0 0 5,171 Property and
check 7,887
6 Neda Khazaei 0079268684 ----- ----- ----- Relatives --- --- 1,723 0 0 1,723 Property andcheck 1,712
7 Seyyed HosseinMirvalad 0013679015 ----- ----- ----- Relatives --- --- 92 0 0 92 check 140
8
Middle East Mines & Mineral Industries DevelopmentHolding Co.
10103500247 310643 December 8,2007 Tehran Management
Position --- --- 2,658,960 92,201 125,814 2,876,975
check, Promisso- ry Note, Depositand Binding Con-tract
17,370,047
9 Pars Aryan Invest-ment Co. 10102347321 192796 October 2,
2002 Tehran Shareholder --- --- 1,625,774 0 0 1,625,774 check and Bind-ing Contract 3,899,893
10 Pasargad InsuranceCo. 10103270201 290070 February 7,
2007 Tehran Member of the group 20% --- 0 0 8,555 8,555 Deposit 52,340
11 Pasargad AryanICT Co. 10103807145 263296 January 15,
2006 Tehran Member of the group 49% --- 1,599,021 235,200 109,216 1,943,437check, Promis-
sory Note andBinding Contract
3,488,305
12 Bank PasargadE-Payment Co. 10103105417 265088 February 21,
2006 Tehran Member of the group 30% --- 553,851 0 4,000 557,851check, Promis-
sory Note andBinding Contract
2,735,173
13 Pasargad Leasing Co. 10102822636 241515 February 21,2005 Tehran Member of the group 67% --- 728,000 23,450 7,528 758,978 check and Bind-
ing Contract 976,991
14 Datis Aryan QeshmCo. 14000256403 3328 January 18,
2012 Qeshm Member of the group --- 36.75% 226,782 0 3,671 230,453check, Promis-
sory Note andBinding Contract
430,917
15 Adonis ElectronicService Co. 10320848519 426137 May 21, 2012 Tehran Management
Position --- --- 121,199 0 102,691 223,890check, Promis-
sory Note andProperty
1,072,842
16 Pasargad Machinery and EquipmentLeasing Co.
10102339790 192021 September 10,2002 Tehran Member of the group 18% --- 3,200,000 0 0 3,200,000
Property , Stock and BindingContract
5,685,043
17 Dadepardazan TadbirSarmaye Co 10320145599 362524 January 5, 2010 Tehran Member of the group --- 48.98% 0 0 100 100 Deposit 600
18 Aryan Pasargad ConstructionManagement Co.
10103627783 325818 May 26, 2008 Tehran Member of the group --- 65.66% 3,841,826 6,250 1,744 3,849,820 check and Bind-ing Contract 6,434,886
19 Pasargad AyandeNegar Trade Man-agement Co.
10103042357 267436 March 15, 2006 Tehran ManagementPosition --- --- 1,693,327 0 0 1,693,327 check and Bind-
ing Contract 5,443,523
20 Pasargad ArzeshAfarinan Co. 1010281941 263699 January 10,
2006 Tehran Member of the group 97.99% --- 1,356,200 0 0 1,356,200 check and Bind-ing Contract 5,251,576
21 Bank PasargadBrokerage Co. 10780103032 6889 June 12, 2006 Arak Member of the group 49% --- 22,500 0 4,536 27,036
check, Promis- sory Note andBinding Contract
101,078
22 Arzesh Pardaz ArianInvestment Co. 10320481823 397933 February 20,
2011 Tehran ManagementPosition --- --- 66,000 0 29 66,029 check 87,673
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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23 Modaberan TejaratIraninan Co. 10103164884 281686 October 9,
2006 Tehran Member of the group --- 97.98% 404,122 0 0 404,122 check and Bind-ing Contract 1,162,240
24 Pardazesh ElectronicRashed Samane Co. 10103682222 337970 August 13,
2008 Tehran Member of the group --- 48.99% 110,320 0 6,921 117,241check, Promis-
sory Note andBinding Contract
342,470
25 Berid FanavarArian Co. 14003966870 650 December 1,
2014 Pardis Member of the group --- 24.50% 164,271 0 27,458 191,729check, Promis-
sory Note andBinding Contract
729,815
26 Datam Kish ICT Co. 1086156000 6168 December 6,2006 Kish Member of the group --- 49.00% 0 0 41 41 check and Prom-
issory Note 488
27 Pasargad Aryan De-velopment CT Co. 14003966870 452182 April 5, 2014 Tehran Member of the group --- 10.09% 1,830,715 0 17,976 1,848,691
check, Promisso- ry Note, Deposit and Binding Contract
4,691,708
28 Liman ConsultantEngineers Co. 10100889871 43627 January 27,
1982 Tehran Member of the group --- 23.46% 0 0 1,178 1,178 check and Prom-issory Note 8,102
29 Chakad TavangaryCo. 10320875530 439631 May 29, 2013 Tehran Member of the group --- 6.80% 0 12,500 0 12,500 ------- 0
30 Pasargad NasimSalamat Co. 14005018760 474218 June 17, 2015 Tehran Member of the group 20% --- 0 500,000 0 500,000 ------- 0
31Pasargad Aryan pay-
ment DevelopmentCT Co.
14005530711 4334 January 12,2016
Arvand FreeZone
Member of the group --- 49.00% 0 0 525 525 check and Prom-issory Note 13,066
Total Commitments and Credit Facilities from Related Parties 20,212,946 869,601 422,013 21,504,560 ------- 59,995,841
No Customer name ID
Company Profile
Relation type
Ownership Percentage
Net Balance of Facilities Net
balance ofcommit- ments
Net balance of facilitiesand com-mitments
Collateral
Regis- tration
no.
Registrationdate
Regis- tration
placeDirect Indirect Current Overdue Type Value
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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186 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
69- LARGE EXPOSURES
Row
Name of theBenefi-
ciary
Relation Type Customer Name Registra-tion No.
Net Balance of Facilities and Commitments- IRRm Collateral
Net Balance of Facilities Net Balance of
Commit-ments (3)
Cost of Share
(4)
Total
Type Value- IRRm Performing(1)
Non-Per- forming(2) 1+2+3+4 = 5
1
MID
HCO
Ownership -Management Mabna Khavar Miyaneh Co. 286449 5,518,014 0 0 0 5,518,014 Check 7,219,476
Ownership -Management
Middle East Mines & Mineral Industries Development Holding Co.
310643 3,955,981 92,201 125,814 0 4,173,996 Check, Promissory Note, Deposit andBinding Contract
17,370,046
Ownership -Management Zarand Iranian Steel Co. 333265 36,751,344 0 1,031,420 0 37,782,764
Check, Promissory Note and BindingContract
126,785,287
Ownership -Management Middle East Shining Sun Co. 338505 0 0 238 0 238 Check and Promis-
sory Note 2,506
Ownership -Management
Iranian Industrial Development and Renovation Construction(MANA)
20343 787,560 0 88,753 0 876,313 Check, Promissory Note, Deposit andBinding Contract
3,347,606
Ownership -Management Iranian Babak Copper Co. 379679 6,140,938 39,543 95,312 0 6,275,793
Check, Promissory Note and BindingContract
26,637,891
Ownership -Management Sirjan Iranian Steel Co. 362111 18,543,398 0 90,467 0 18,633,865
Check, Promissory Note, Binding Contract and Rightof Succession
63,596,099
Ownership -Management
Karvan sanat khavar MiyanehCo. 10947 0 99,474 5,710,727 0 5,810,201 Check 33,431,191
Ownership -Management Bootiyaye Iranian Steel Co. 417235 6,144,942 0 1,343,585 0 7,488,527 Check 23,261,442
Ownership -Management Manasaz Abyek Co. 418 0 0 1,800 0 1,800 Check and Promis-
sory Note 21,594
Ownership -Management
Middle East Meyar SanatEngineering Co. 363068 0 0 68,599 0 68,599
Check, Promissory Note and BindingContract
787,834
Ownership -Management Aftab Derakhshan Khavarmiyane 230104 0 0 160 0 160 Check and Promis-
sory Note 1,920
Ownership -Management
Middle East Mines & MineralRenovation & development Co. 430823 1,651,859 0 4,958 0 1,656,817
Check, Promissory Note and BindingContract
6,614,220
Ownership -Management GMI Hamburg 2010/3238 0 0 43,423 0 43,423 Check, Promissory
Note and Deposit 532,136
Ownership -Management Ferosilis Gharb ars Co. 9150 548,429 0 34,520 0 582,949 Check, Promissory
Note and Deposit 1,255,081
Ownership -Management Pouya Andishan Co. 444354 4,082,234 0 0 0 4,082,234 Check 5,341,830
Ownership -Management Iranian Rahbord Investment CO. 304269 321,719 0 0 0 321,719 Check 420,578
MIDHCO Group Total 84,446,418 231,218 8,639,776 0 93,317,412 ------- 316,626,737
BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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LARGE EXPOSURES
Name of the
BeneficiaryRelation Type Customer Name Registra-
tion No.
Net Balance of Facilities and Commitments- IRRm Collateral
Net Balance of Facilities Net Balance of
Commit-ments (3)
Cost ofShare (4)
Total
Type Value- IRRm Performing
(1) Non-Per-
forming(2) 1+2+3+4
= 5
Gera
mi G
roup
Ownership -Management Atlas Khodro Co. 105106 5,009,807 0 9,093 0 5,018,900
Check and CollectingDocuments
11,145,418
Ownership -Management Asan Motor Co. 87015 10,491,321 0 0 0 10,491,321
Check and CollectingDocuments
21,119,606
Ownership -Management Golestan Co. 8000 968,141 0 1,603 0 969,744 Check 2,550,000
Ownership -Management Mehvar Mashin Co. 98937 3,995,951 0 0 0 3,995,951
Check and CollectingDocuments
9,542,164
Ownership -Management Technical Quality System Co. 335557 0 0 1,681 0 1,681
Check and PromissoryNote
18,600
Gerami Group Total 20,465,220 0 12,377 0 20,477,597 ------- 44,375,788
Arz
esh
Afar
inan
Gro
up
Ownership -Management Arzesh Afarinan Co. 263699 1,356,200 0 0 7,447,639 8,803,839 Check and Bind-
ing Contract 5,251,576
Ownership -Management Iranian Saman Trading Co. 432371 6,556,063 0 0 0 6,556,063 Check 12,602,401
Ownership -Management Payam Avaran Iranian Co. 438235 1,900,091 0 0 0 1,900,091 Check 2,900,743
Ownership -Management Kashefan Pars Co. 435233 1,731,915 0 0 0 1,731,915 Check 2,792,200
Ownership -Management Rastin Pars Co. 441595 1,872,744 0 0 0 1,872,744 Check 3,422,314
Ownership -Management Andisheh Mad Co. 441629 2,177,613 0 0 0 2,177,613 Check 3,832,804
Ownership -Management Pouya Energy Co. 364559 0 0 1,252 0 1,252 Check 7,510
Ownership -Management Iranian Trading Co. 281686 404,122 0 0 0 404,122 Check and Bind-
ing Contract 1,162,240
Ownership -Management
Pasargad Aryan SupportService Co. 287328 92,483 0 0 0 92,483 Check and Bind-
ing Contract 203,400
Ownership -Management
Pasargad Machinery andEquipment Leasing Co. 192021 3,200,000 0 0 54,115 3,254,115
Binding Con- tract, Propertyand Stocks
5,685,043
Ownership -Management
Pasargad Massive Develop-ment Co. 319762 5,676,281 0 773 0 5,677,054
Check, Promis- sory Note andBinding Contract
12,381,101
Ownership -Management
International Smart BuildingSolutions Co. 438653 0 0 3,663 0 3,663
Check and PromissoryNote
62,653
Arzesh Afarinan Group Total 24,967,512 0 5,688 7,501,754 32,474,954 ------- 50,303,985
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BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
188 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
LARGE EXPOSURES
Name of the
BeneficiaryRelation Type Customer Name Registra-
tion No.
Net Balance of Facilities and Commitments- IRRm Collateral
Net Balance of Facilities Net Balance of
Commit-ments (3)
Cost ofShare (4)
Total
Type Value- IRRm Performing(1)
Non-Per- forming(2)
1+2+3+4= 5
Tam
in M
aska
n Gr
oup
Ownership -Management Tamin Maskan Co. 346846 18,870,306 0 0 0 18,870,306 Check and Bind-
ing Contract 29,647,175
Ownership -Management Pasargad Fanavaran Co. 326731 2,000,000 0 0 0 2,000,000 Check 7,494,000
Ownership -Management Armaghan Stable Trading Co. 439967 1,997,969 0 0 0 1,997,969 Check 3,541,603
Ownership -Management Maskan Paidar Co. 440103 2,068,047 0 0 0 2,068,047 Check 3,272,411
Ownership -Management Taban Tejarat Co. 438631 2,276,321 0 0 0 2,276,321 Check 4,006,276
Ownership -Management Tamin Atieh Co. 436095 4,603,145 0 0 0 4,603,145 Check 6,939,884
Ownership -Management Tamin Atieh Expand Trade Co. 436091 307,278 0 0 0 307,278 Check 402,556
Ownership -Management No Andish Matin Co. 461048 5,478,977 0 0 0 5,478,977 Check 7,168,339
Tamin Maskan Group Total 37,602,043 0 0 0 37,602,043 ------- 62,472,244
Pas
arga
d En
ergy
Dev
elop
men
t Gro
up
Ownership -Management
Pasargad Energy DevelopmentCo. 319887 0 0 6,357,314 0 6,357,314
Check, Promis- sory Note andDeposit
17,410,523
Ownership -Management Petro Danial Kish Co. 8406 20,466 0 19,196 0 39,662
Check, Promis- sory Note andBinding Contract
307,665
Ownership -Management
Poly Ethylene GostaranAlborz Co. 365193 0 0 1,939 0 1,939 Check and Prom-
issory Note 27,843
Ownership -Management
Naftatir Industrial ProjectsManagement Co. 384328 17,951,316 0 127,224 0 18,078,540
Check, Promisso- ry Note and Letterof Guarantee
216,140,736
Ownership -Management Qeshm Movaled Co. 1858 589,933 0 16,200 0 606,133 Check and Prom-
issory Note 1,065,807
Ownership -Management
Tafahom Engineering Support and Technology DevelopmentCo.
429297 0 0 630 0 630 Check and Bind-ing Contract 7,560
Ownership -Management Tadbir Saramad Co. 412157 688,500 0 0 0 688,500 Check 1,520,842
Ownership -Management Ostovan Kish Drilling Co. 9113 600,128 0 0 0 600,128 Check 783,724
Ownership -Management Petro Kariz Omid Kish Co. 10700 1,639,382 0 4,756 0 1,644,138 Check 1,995,818
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BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
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eportFinancial S
tatements &
Notes
LARGE EXPOSURES
Name of the
BeneficiaryRelation Type Customer Name Registra-
tion No.
Net Balance of Facilities and Commitments- IRRm Collateral
Net Balance of Facilities Net Balance of
Commit-ments (3)
Cost ofShare (4)
Total
Type Value- IRRm Performing(1)
Non-Per- forming(2)
1+2+3+4= 5
Ownership -Management Sivan Tadbir Trading Co. 429663 339,888 0 0 0 339,888 Check 444,867
Ownership -Management Sirjan Energy Development Co. 2709 10,000 0 0 0 10,000 Check 13,500
Ownership -Management
Pasargad Industrial EnergyDevelopment Co. 374476 0 0 2,664 0 2,664 Check and Prom-
issory Note 32,000
Ownership -Management Pishroo Energy Co. 423289 0 2,928 0 0 2,928 Binding Contract 3,514
Ownership -Management
Pasargad Shams Electric PowerGeneration Co. 411893 3,035,589 0 0 0 3,035,589 Check 3,969,654
Ownership -Management
Hengame Qeshm Equippingand Developing Industries Co. 5150 0 0 1,922,282 0 1,922,282 Check 16,530,000
Ownership -Management Pasargad Trade Co. 323480 1,017,300 0 4,782 0 1,022,082 Check and Prom-
issory Note 1,387,274
Ownership -Management Pasargad Petro Kala Co. 8331 279,900 0 0 0 279,900 Check 370,000
Ownership -Management
Pezhvak Power EngineeringServices Co. 219931 29,932 0 1,119 0 31,051 Check and Prom-
issory Note 55,135
Pasargad Energy Development Group Total 26,202,334 2,928 8,458,106 0 34,663,368 ------- 262,066,462
Par
s Ary
an G
roup
Ownership -Management Pars Aryan Investment Co. 19276 1,625,774 0 0 0 1,625,774 Check and Bind-
ing Contract 3,899,893
Ownership -Management
Arzeshpardaz Aryan Invest-ment Consulting Co. 397933 66,000 0 29 0 66,029 Check 87,673
Ownership -Management Iranian re-insurance Co. 370373 0 0 0 131,326 131,326 ..................... 0
Ownership -Management Pasargad Insurance Co. 290070 0 0 8,555 432,986 441,541 Deposit 52,340
Ownership -Management Chakad Tavangari Co. 439631 0 12,500 0 0 12,500 ..................... 0
Ownership -Management Pasargad Nasim Salamat Co. 474218 0 500,000 0 680,000 1,180,000 ..................... 0
Ownership -Management Liman Consulting Engineers 43627 0 0 1,178 0 1,178 Check and Prom-
issory Note 8,102
Ownership -Management Pasargad Leasing Co. 241515 732,527 23,450 7,528 512,550 1,276,055 Check and Bind-
ing Contract 976,991
6
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BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
190 BANK PASARGAD Annual Report 2017-2018 Financial Statements & Notes
LARGE EXPOSURES
Name of the
BeneficiaryRelation Type Customer Name Registra-
tion No.
Net Balance of Facilities and Commitments- IRRm Collateral
Net Balance of Facilities Net Balanceof Commit-ments (3)
Cost ofShare (4)
Total
Type Value- IRRm Performing
(1) Non-Per-
forming(2) 1+2+3+4 = 5
Ownership -Management
Pasargad Aryan BuildingManagement CO. 325818 3,841,826 6,250 1,744 0 3,849,820
Check and BindingContract
6,434,886
Ownership -Management
Aryan Engineering SystemBuilding Management Co. 307237 740,996 0 0 0 740,996 Check 976,600
Pars Aryan Group Total 7,007,123 542,200 19,034 1,756,862 9,325,219 ------- 12,436,485
Ownership -Management
Iranian West Trade Development Co. 432385 8,693,175 0 0 0 8,693,175 Check 11,441,303
Iranian West Trade Development Total 8,693,175 0 0 0 8,693,175 ------- 11,441,303
Ownership -Management Isfahan Iron Melting Co. 25230 7,909,012 171,870 178,708 0 8,259,590
Check and BindingContract
23,449,752
Isfahan Iron Melting Total 7,909,012 171,870 178,708 0 8,259,590 ------- 23,449,752
Ownership -Management Mapna Group 99134 1,506,781 1,920,762 59,596 4,192,195 7,679,334
Check, Collecting Documents, Deposit and PromissaryNote
10,818,381
Mapna Group Total 1,506,781 1,920,762 59,596 4,192,195 7,679,334 ------- 10,818,381
Large Exposure Total 218,799,618 2,868,978 17,373,285 13,450,811 252,492,692 ------- 793,991,137
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BANK PASARGAD (PJSC) NOTES to CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL YEAR ENDED MARCH 20, 2018
The Approved Capital base for the financial year ended March 20, 2018 72,517,417
Threshold of Large Exposure Reporting (which is >= 10% of Capital base) 7,251,742
Threshold of Large Exposure Reporting for Foreign branches (which is 3% ofBranch Total Assets) -------
Responsible Department for the Regulation Credit Mgmt.
IRRm
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eportFinancial S
tatements &
Notes